EGB/Gilt - UK 30yr yield are lowest since January

EGBs and Bund have held onto gains throughout the afternoon session, this was a continuation from overnight flows, and investors favouring safer haven on the back of the Omicron variant, and latest Moderna's chief comment on the struggle the vaccine could have against that variant.

• Powell pre-prepared Dovish testimony was also a factor in the bid going into Bonds.
• Peripheral spreads are mixed, with Greece 1.4bp tighter, and Portugal and Spain 0.4bp wider.
• Gilts 30yr yield fell to lowest since the start of the year, 28/01.
• This pushed the UK5s/30s lower, still just short of the 24.564 support noted today.
• Worth noting that 24.564 is the lowest print (flattest) since 2008.
• Looking ahead, Fed Williams and Clarida are still scheduled to speak.
• Gilt futures are up 0.56 today at 127.74 with 10y yields down -6.8bp at 0.791% and 2y yields down -5.4bp at 0.437%
• Bund futures are up 0.54 today at 172.56 with 10y Bund yields down -3.9bp at -0.358% and Schatz yields down -1.0bp at -0.769%
• BTP futures are up 0.63 today at 152.03 with 10y yields down -4.3bp at 0.933% and 2y yields down -1.0bp at -0.269%.
• OAT futures are up 0.65 today at 168.51 with 10y yields down -4.6bp at -0.3% and 2y yields down -0.9bp at -0.811%.