Free Trial

EGB-GILTS CASH CLOSE: Lowest close for Bund yields since 2 February


Bunds and gilts have outperformed Treasuries today despite some decent data this morning.

  • German GDP disappointed but there were some positive surprises elsewhere, both in the pan-Eurozone data and in Italian, Spanish and (to a lesser extent) French data.
  • Eurozone inflation data also came in higher than expected with the headline rate rising to 2.2%Y/Y (2.0% expected) although core was in line with expectations at 0.7% Y/Y.
  • Despite this better than expected data, peripheral spreads are generally a little wider on the day, with 10-year BTP-Bund spreads widening 0.7bp to 108.0bp.
  • The moves higher for Bunds have seen yields close at their lowest level since February 2.
  • Gilt yields in contrast have managed to close above the 200-dma which has now been breached many times over the past 2 weeks on an intraday basis.
  • Bund futures are up 0.13 today at 176.57 with 10y Bund yields down -1.1bp at -0.462% and Schatz yields down -0.5bp at -0.767%.
  • Gilt futures are up 0.04 today at 129.79 with 10y yields down -0.8bp at 0.564% and 2y yields down -1.4bp at 0.054%.
  • BTP futures are down -0.07 today at 154.28 with 10y yields down -0.4bp at 0.620% and 2y yields unch at -0.453%.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.