EGB/GILT SUMMARY-Trading back to flat

EGBs were better offered during the morning session, but have slowly reversed course during this afternoon.

• Bunds are back in positive territory, with some small short covering in US Treasuries and Europe.
• Some short term short cover post IJC, given the lack of momentum.
• Jobless was mixed, pretty much inline, while continuing claims were a miss.
• Peripherals are all tighter, with Italy leading by 2.3bps.
• Gilt have kept up pace with Bund, spread is just 0.3bp wider.
• Curve has reversed early steepening to trade flat on the session
• Looking ahead, Fed's Bostic takes part in habitat for Humanity Panel.
• BUT, All the attention is turning to US NFP tomorrow.
• Gilt futures are down -0.01 today at 128.09 with 10y yields up 0.6bp at 0.721% and 2y yields down -0.1bp at 0.056%
• Bund futures are up 0.02 today at 172.63 with 10y Bund yields up 0.2bp at -0.207% and Schatz yields down -0.7bp at -0.674%
• BTP futures are up 0.36 today at 151.77 with 10y yields down -2.3bp at 0.795% and 2y yields down -1.1bp at -0.381%.
• OAT futures are up 0.10 today at 159.14 with 10y yields down -0.7bp at 0.118% and 2y yields down -0.6bp at -0.651%.