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EGB/Gilt - US inflation push Bonds lower

BONDS
  • A busier session this afternoon, with EGBs and Bund trading lower, led by Treasuries, after the US CPI beat.
  • Largest move was in Commodity and Gold, with the precious metal rallying a decent $45.
  • Peripheral spread are wider against Germany, with Italy and Greece by 2.8bps.Gilts underperforms today, pushing the Gilt/Bund spread wider, by 3.1bps.
  • UK 5s/30s leans bear flatter, but trade at today's mid range at 31.998bps.
  • Dec Bund futures (RX) down 28 ticks at 170.97 (L: 170.91 / H: 171.38)
  • Germany: The 2-Yr yield is up 3.4bps at -0.708%, 5-Yr is up 3.3bps at -0.553%, 10-Yr is up 2.8bps at -0.27%, and 30-Yr is up 3.1bps at 0.038%.
  • Dec Gilt futures (G) down 50 ticks at 126.69 (L: 126.58 / H: 127.1)
  • UK: The 2-Yr yield is up 8.2bps at 0.534%, 5-Yr is up 7.7bps at 0.674%, 10-Yr is up 5.9bps at 0.883%, and 30-Yr is up 7.1bps at 0.998%.
  • Dec BTP futures (IK) down 59 ticks at 152.31 (L: 152.23 jpy/ H: 153.08)
  • Dec OAT futures (OA) down 43 ticks at 167.19 (L: 167.14 / H: 167.71)
  • Italian BTP spread up 2.7bps at 116.6bps
  • Spanish bond spread up 2.1bps at 69.9bps
  • Portuguese PGB spread up 1.7bps at 61bps
  • Greek bond spread up 2.5bps at 140.5bps,

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