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EGB/Gilt: Trading Firmer

BOND SUMMARY

European sovereign bonds have trade firmer this morning alongside modest gains for equities.

  • Gilts rallied early into the session before giving up the early gains to trade back towards yesterday's close.
  • Bunds have pushed higher with the longer end of the curve leading the charge. The 2s30s spread is 2bp narrower on the day.
  • OAT yields are 1-2bp lower in the belly and long end of the curve.
  • BTP yields are broadly 1-2bp lower with the curve marginally flatter on the day.
  • German industrial production for May came in weaker than expected (-0.3% M/M vs 0.5% survey).
  • Supply this morning came from the UK (Gilts, GBP600mn), Germany (Bobl, EUR3.949bn allotted and Greece (625mn).

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