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EGB/Gilt - UK Yields extends decline

BONDS
  • A more steady session as we start a new week, but some decent action going through in Gilts.
  • UK 10yr real yield fell to lowest levels on record, and the 30yr yield tested 1% and lowest levels since August.
  • Bund has lagged the UK, and as such, the Gilt Bund spread is now tightest since late September, below the 20/09 low a 111.1677.
  • Peripheral spread are all tighter today, with Italy leading by 1.9bps.
  • Looking ahead, Fed Powell make opening remarks at Fed diversity conference. Fed Harker, Bowman and Evans also speaks.
  • BoE Bailey speaks at a citizen Forum.
  • Gilt futures are down -0.12 today at 127.00 with 10y yields up 0.6bp at 0.849% and 2y yields up 0.1bp at 0.401%.
  • Bund futures are down -0.26 today at 170.81 with 10y Bund yields up 2.0bp at -0.263% and Schatz yields up 0.1bp at -0.737%.
  • BTP futures are up 0.09 today at 152.56 with 10y yields down -0.1bp at 0.874% and 2y yields down -0.8bp at -0.310%.
  • OAT futures are down -0.19 today at 167.23 with 10y yields up 1.7bp at 0.077% and 2y yields down -0.4bp at -0.746%.

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