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EGB/Gilts- ALL EYES on NFP and ISM services

BONDS
  • EGBs have traded within ranges this morning, with decent volumes going, but mostly spread related.
  • Desks are taking the opportunity ahead of NFP and a long holiday weekend for the US.
  • Expiry will be on the 8th for the September contract.
  • Italy has underperformed Bund, pushing the 10yr spread 2.7bps wider.
  • Greece on the other hand is 0.6bp tighter.
  • The morning session was dominated by European services PMIs, but the data had very little impact on markets.
  • Gilts saw UK final service PMI being revised lower to 55 vs 55.5 expectation.
  • The contract is unaffected, and underperforms Bunds also.
  • Gilt/Bund spreads is 1.1bp wider.
  • US treasuries are trading within their tight overnight ranges, as the Globe awaits on the US NFP and US.ISM services releases.
  • Besides the data, we don't have any scheduled speakers, but the US The President will delivers remarks on the August jobs report at 1000ET/15.00BST. Nothing new here.

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