EGB/Gilts

A steady morning session for EGB, with price action taking their cue from the better bid in Risk.

• Bund upside has been limited and the contract has traded heavy, with much better buying noted in Equities throughout the European morning session.
• Initial bid in Equity, was helped by the European PMI beat this morning.
• Nonetheless, price action has lacked momentum bias, as we head into a huge week in terms of risk, which include US Election, Brexit talks continuing, US FOMC, RBA, Norges Bank and BOE, and US NFP to close down the week.
• Peripheral spread have traded mixed, with Greece 1.6bps tighter against Germany, and Italy 1bp wider.
• Gilt are outperforming, despite a beat in the final manufacturing PMI, on lockdown concerns.
• Looking ahead, ECB Mersch and Rehn are the notable speakers, while U.K. Johnson will update lawmakers on lockdown
• Bund futures are down -0.04 today at 176.11 with BTP futures down -0.28 at 149.31 and OAT futures down -0.01 at 170.10.