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EGB/Gilt stays under pressure

BONDS

Some recovery from the lows in EGBs and Bund, after the contracts were dragged lower by US Treasuries, following the US inflation beat.

Notable peripheral spreads are once again Italy and Greece versus the German 10yr.

BTP/Bund is 6bps wider, and highest since July 2020.

Greek/Bund is 4.3bps wider and highest since May 2020.

Gilt has traded inline with its German counterpart, also down on the session, but off the low, and as such the Gilt/Bund spread is flat at the time of typing.

Looking ahead, BoE Andrew Bailey speaks at the CityUK annual dinner. Text released at 5pm

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