EGB/Gilts - Attention turns to US inflation tomorrow

EGBs have stayed within ranges this afternoon, with all eyes on US CPI tomorrow.

• Bund is in a narrow 30 ticks range (171.62/171.92), on below average volumes.
• Peripherals have tightened somewhat, Greece is in the lead, by 1.7bp, and Italy 1.2bp.Gilts are in a 25 ticks range (127.78/127.03), and continue to trade in line with Bund, albeit with a tighter Gilt/Bund spread (0.8bp).
• UK curves, 2s/10s and 5s/30s are trading flatter, but ranges have been limited with Real Money desks on the sidelines.
• Dec Bund futures (RX) down 4 ticks at 171.84 (L: 171.62 / H: 171.92)
• Germany: The 2-Yr yield is unchanged at -0.704%, 5-Yr is down 0.6bps at -0.644%, 10-Yr is down 0.6bps at -0.336%, and 30-Yr is up 0.2bps at 0.16%.
• Dec Gilt futures (G) down 2 ticks at 128 (L: 127.78 / H: 128.03)UK: The 2-Yr yield is down 0.9bps at 0.224%, 5-Yr is down 0.9bps at 0.411%, 10-Yr is down 1.4bps at 0.744%, and 30-Yr is down 2bps at 1.058%.
• Dec BTP futures (IK) up 23 ticks at 154.1 (L: 153.73 / H: 154.17)
• Dec OAT futures (OA) down 2 ticks at 168.27 (L: 168.09 / H: 168.38)
• Italian BTP spread down 1.2bps at 101.9bps
• Spanish bond spread down 0.1bps at 66.2bps
• Portuguese PGB spread down 0.3bps at 55.8bps
• Greek bond spread down 1.5bps at 111.4bps.