EGB/Gilts - better bid on lower energy prices

A more range bound session for EGBs, albeit better bid, and Energy prices was one of the driver for today's session, as Energy prices fell today.

Volumes have been ok too, but the street awaits the US NFP tomorrow, so price action lacked clear direction bias.

Peripheral spread still see Italy leading, by 3.8bps on the session, after yesterday's ECB sources story on Bond buying.

Gilt are underperforming somewhat, close to flat , but the Gilt/Bund spread is once again wider, by 2bps at 127.00, although it is still short of that 2016 peak.

Looking ahead, Fed Mester, ECB Lane, and B20 event in Rome with Draghi, Yellen, Lagarde

Dec Bund futures (RX) up 17 ticks at 169.82 (L: 169.4 / H: 170)

Germany: The 2-Yr yield is down 0.5bps at -0.699%, 5-Yr is down 1.3bps at -0.562%, 10-Yr is down 1bps at -0.192%, and 30-Yr is down 0.5bps at 0.296%.

Dec Gilt futures (G) up 1 ticks at 124.8 (L: 124.6 / H: 125.19)

UK: The 2-Yr yield is up 0.5bps at 0.475%, 5-Yr is up 0.6bps at 0.697%, 10-Yr is up 0.6bps at 1.077%, and 30-Yr is up 0.5bps at 1.433%.

Dec BTP futures (IK) up 54 ticks at 152.17 (L: 151.66 / H: 152.33)

Dec OAT futures (OA) up 26 ticks at 166.07 (L: 165.69 / H: 166.23)