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EGB/Gilts - 10yr German yield highest since 2018

BONDS
  • EGBs and Bund are still offered this afternoon, a continuation from the European morning trading session, after Russia sends back some of its troops to their base.
  • Putin Scholtz presser was cordial, with more talks going forward expected.
  • Bund tested 0.235% in yield, highest since 2018, but off the high at the time of typing.
  • Italian BTP made an attempt at 2% in the 10yr, printed 1.998% high.
  • Gilt outperforms Europe, after UK incomes sees the biggest squeeze since 2014, as real earnings falls.
  • Market pricing of rate hike looks overdone, and with Rate hikes coming and Tax hikes in April, the standard of living is set to fall, which it is already.
  • All the attention will be on the UK CPI tomorrow morning.

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