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EGB/Gilts - Remains supported after the US Michigan miss

BONDS
  • EGBs and Bund have paired losses, and make new session high, the timing of the squeeze higher on reports that the Netherlands were heading back into lockdown this weekend.
  • Tension in Ukraine/Russia, and Belarus/EU is also in focus supporting safer haven.
  • US Michigan missed expectation and kept a bid into Tnotes and in turn Europe.
  • Peripheral spreads are all wider this afternoon, with Greece by 4.7bps.
  • Gilts have also lagged today, translating in a Gilt/Bund wider spread, by 2bps.
  • Looking ahead, Fed Williams is still scheduled.
  • After markets, Ratings from Fitch on Portugal and S&P on Netherlands
  • Dec Bund futures (RX) up 59 ticks at 171.01 (L: 170.32 / H: 171.07)
  • Germany: The 2-Yr yield is down 4.8bps at -0.741%, 5-Yr is down 5.1bps at -0.567%, 10-Yr is down 3.2bps at -0.263%, and 30-Yr is down 1.8bps at 0.055%.
  • Dec Gilt futures (G) up 13 ticks at 126.46 (L: 126.1 / H: 126.6)
  • UK: The 2-Yr yield is down 4.7bps at 0.518%, 5-Yr is down 4.1bps at 0.664%, 10-Yr is down 1.7bps at 0.903%, and 30-Yr is up 0.5bps at 1.065%.
  • Dec BTP futures (IK) up 5 ticks at 151.59 (L: 150.72 / H: 151.78)
  • Dec OAT futures (OA) up 48 ticks at 167.02 (L: 166.31 / H: 167.06)

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