EGB/GILT - Yields extend losses

Another busy session for Global market, although price action has been more subdued in Risk (Equities).

• All of the action has been in Govies, with Global yields extending losses.
• Bund 10yr yield closed the downside gap -0.401%/-0.422% in early trading and extended towards next yield support at 0.442% (61.8% retrace of the Nov20/May 21 rally).
• This equated to 176.30 in Futures terms, which the contract held, after printing a 176.28 high, now at 176.08 at the time of typing.
• Peripherals are all wider, with Greece leading by 3.4bps.
• Gilts have also been favoured, with Covid potential impact on the pace of the recovery favouring safer assets.
• UK 5/30s has flattened to lowest levels since August 2020.
• Gilts have faded, in line with EGBs, to trade at 130.13 at the time of typing.- Gilt futures are up 0.18 today at 130.13 with 10y yields down -3.1bp at 0.528% and 2y yields down -1.2bp at 0.064%
• Bund futures are up 0.56 today at 176.08 with 10y Bund yields down -4.2bp at -0.429% and Schatz yields down -2.7bp at -0.724%.
• BTP futures are up 0.23 today at 153.32 with 10y yields down -2.8bp at 0.684% and 2y yields up 0.2bp at -0.414%
• OAT futures are up 0.34 today at 161.63 with 10y yields down -3.2bp at -0.72% and 2y yields down -2.2bp at -0.694%.