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EGB/Gilt - Yields rise on European inflation beat

BONDS
  • EGBs and Bund have continued to trade lower this afternoon, Yield have once again extended higher.
  • The French, Italian and EU CPI beats set the tone for the session.
  • German 10yr Yield tested a 1.139% high, and trades near that price at the time of typing.
  • BTP has led the way lower, pushing the BTP/Bund spread wider, by 6.8bps, and back at the 200bps handle.
  • Gilt has underperformed Europe, but is nonetheless down 108 ticks at the time of typing.
  • Gilt/Bund spread sits 2.5bps wider, but well within the past few days range.
  • Gilt futures are down -1.02 today at 116.86 with 10y yields up 10.7bp at 2.095% and 2y yields up 9.8bp at 1.570%.
  • Bund futures are down -1.27 today at 151.38 with 10y Bund yields up 8.5bp at 1.138% and Schatz yields up 6.8bp at 0.507%.
  • BTP futures are down -1.66 today at 126.74 with 10y yields up 15.4bp at 3.148% and 2y yields up 9.5bp at 1.015%.
  • OAT futures are down -1.22 today at 143.92 with 10y yields up 9.6bp at 1.658% and 2y yields up 6.5bp at 0.357%.

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