EGB/Gilt: US Election Dominating Newsflow

The ongoing US election count continues to dominate this morning's narrative. Equity and commodity markets are broadly risk-on as the balance of probabilities still appears to favour a Biden win, while core sovereign bonds have rallied.

• Gilts have rallied and the curve has bull flattened. The 2s30s spread is 4bp narrower.
• Bunds have slightly lagged the gilt rally. Cash yields are 1-3bp lower on the day.
• OATs are trading broadly in line with bunds. Last yields: 2-year -0.7279%, 5-year -0.7150%, 10-year -0.3649%, 30-year 0.3152%.
• BTPs have similarly traded firmer and the curve is marginally flatter.
• Supply this morning came from Germany (Green Bond, EUR6.62bn), Finland (Bonds, EUR951mn), Greece (Bills, EUR812.5mn).
• This morning's final October PMI prints were broadly in line with the initial estimates with the exception of the Spanish services and composite prints which came in slightly higher, as well as a marginal beat for the German prints.
• Tomorrow's BoE meeting will be a live event with a majority of analysts expecting a GBP100bn QE expansion. The MNI BoE Preview for October has been published online and by email.