EGB/GILTS SUMMARY

A busy morning session for EGBs, with the beat in EU PMIs beating expectations.

• France, Germany and EC PMIs saw decent release beat, which pushed Equities higher and EGB's lower.
• German curve is bear steepening and the Bund contract is down 64 ticks at the time of typing.
• Brexit hope has also been a playing factors, with hope that a deal could be reach, although some of the headlines still note that Fish and level playing remains.
• Gilts have traded in tandem with EGB and have taken their cues from Brexit hope, and trade 30 ticks down during the morning session.
• Looking ahead, US Retail sales and PMI are the notable data. Speakers sees ECB Guindos, de Cos, Schnabel and Weidmann.
• ALL EYES on Brexit, US stimulus and especially the Fed.
• Gilt futures are down -0.32 today at 134.44 with 10y yields up 2.7bp at 0.286% and 2y yields up 1.0bp at -0.53%.
• Bund futures are down -0.61 today at 177.66 with 10y Bund yields up 3.6bp at -0.576% and Schatz yields up 2.2bp at -0.744%
• BTP futures are down -0.26 today at 152.13 with 10y yields up 1.8bp at 0.536% and 2y yields up 0.8bp at -0.450%.