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EGB/Gilt - Trade in the red going into the weekend

BONDS
  • Bund and EGBs trade lower this afternoon, taking their cue from US Treasuries, after the US Michigan inflation component showed a higher 1yr and 5-10yr inflation expectations.
  • There has been a fair amount of position squaring as we head towards the end of the session for Europe, and the US look forward to their Bank Holiday weekend, MLK day on Monday.
  • Peripherals are mixed, Italy is 1.4bp wider, while Greece is 3.8bps tighter.
  • Gilts have traded in line with Bund and the Gilt/Bund spread is at 0.4bp tighter
  • Mar Bund futures (RX) down 60 ticks at 170.11 (L: 170.05 / H: 170.95)
  • Germany: The 2-Yr yield is up 1bps at -0.589%, 5-Yr is up 2.7bps at -0.372%, 10-Yr is up 3.8bps at -0.052%, and 30-Yr is up 4.2bps at 0.246%.
  • Mar Gilt futures (G) down 24 ticks at 123.41 (L: 123.33 / H: 123.75)
  • UK: The 2-Yr yield is up 2.7bps at 0.788%, 5-Yr is up 2.6bps at 0.962%, 10-Yr is up 3.4bps at 1.139%, and 30-Yr is up 2.9bps at 1.245%.
  • Mar BTP futures (IK) down 58 ticks at 145.99 (L: 145.91 / H: 146.8)
  • Mar OAT futures (OA) down 57 ticks at 162.22 (L: 162.16 / H: 163)
  • Italian BTP spread up 1.3bps at 132bps
  • Spanish bond spread up 0.7bps at 68.4bps
  • Portuguese PGB spread down 1.3bps at 60.3bps
  • Greek bond spread down 4.1bps at 158bps

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