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EGB/Gilt: Trading Weaker

BOND SUMMARY

Following an initially strong start to the week, European sovereign bonds have traded weaker through the morning alongside fresh downside for stocks.

  • Gilts opened higher but have progressively sold off with yields now 1-2bp higher on the day and the curve close to flat overall.
  • The bund curve has bear steepened with the 2s30s spread 2bp wider.
  • OATs have slightly underperformed bunds with yields 1-3bp higher on the day.
  • BTPs have underperformed core EGBs with cash yields 2-5bp higher and the curve 3bp steeper.
  • Supply this morning came from Germany (Bubills, EUR5.89bn allotted), the Netherlands (DTCs, EUR2.34bn) and Slovakia (SlovGBs, EUR528.7mn).

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