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EGB/Gilt - Risk off tone remains

BONDS
  • Most of the action was once again in Equities, with indices falling again during the afternoon session.
  • EGBs and Bund have stayed underpinned throughout the day, on Ukraine concerns, but trade well within past ranges.
  • Volumes are also more subdued, with RM mostly on the sideline, as Rate Govie traders, and the Globe awaits on the FOMC tomorrow.
  • Peripherals are all tighter, with Greece and Italy in the lead by 2bps.
  • Gilts are in the red with investors still pricing a faster rate hike path for the UK versus Europe.
  • The gilt/Bund spread has widened by 1.8bp on the day.
  • Gilt futures are down -0.28 today at 123.30 with 10y yields up 2.9bp at 1.154% and 2y yields up 2.0bp at 0.884%.
  • Bund futures are down -0.09 today at 170.78 with 10y Bund yields up 1.0bp at -0.99% and Schatz yields down -0.3bp at -0.664%.
  • BTP futures are up 0.12 today at 145.99 with 10y yields down -1.2bp at 1.270% and 2y yields down -1.2bp at -0.120%.
  • OAT futures are down -0.01 today at 162.58 with 10y yields up 0.3bp at 0.308% and 2y yields down -0.5bp at -0.658%.

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