EGB/Gilts: Moving higher has been......>

BOND SUMMARY: EGB/Gilts: Moving higher has been the theme of the day. A strong

start on the back of a weak Australian CPI print overnight was aided further by

a weak German IFO print, with the current conditions component falling to its

lowest level in two years. A dovish BoC statement in the afternoon has propelled

global bond markets even higher. In the G3, Bunds have outperformed gilts and

USTs with 10y Bund yields falling back into negative territory. Against this

backdrop we have also had German, Italian and Cypriot supply today.

- Gilt futures are up 0.58 today at 127.42 with 10y yields down -5.5bp at 1.170%

and 2y yields down -4.3bp at 0.743%.

- Bund futures are up 0.83 today at 165.77 with 10y Bund yields down -5.9bp at

-0.19% and Schatz yields down -1.7bp at -0.597%.

- BTP futures are up 0.50 today at 129.66 with 10y yields down -3.6bp at 2.637%

and 2y yields unch at 0.570%.

- Peripheral spreads are a little wider on the day.