EGB/GILTS SUMMARY

Bund trades in a 27 ticks range (171.63-171.90) this morning as the US starts to join the session.

• German curve remains bull flatter since the cash open, but early upside in the long end contract have been limited ahead of heavy supplies from Spain and France.
• With supplies out of the way, Bund trends at the upper range
• Peripherals sees Portugal 0.8bp wider, and Greece 1.6bp tighter versus the German 10yr
• Gilts saw similar price action, initially weighted by the UK supplies, but the contract is underpinned, following MHRA's decision yesterday to stop Astra vaccination for the under 30.
• Looking ahead, US IJC is the only notable data. ECB will publish their minutes. Fed Bullard and Kashkari on Economy.
• Fed Powell is in an IMF panel, as well as Riksbank Ingves and Breman.
• Jun Bund futures (RX) up 16 ticks at 171.83 (L: 171.63 / H: 171.9)
• Germany: The 2-Yr yield is down 0.6bps at -0.709%, 5-Yr is down 0.4bps at -0.661%, 10-Yr is down 0.4bps at -0.328%, and 30-Yr is unchanged at 0.231%.
• Jun Gilt futures (G) up 3 ticks at 128.23 (L: 128.12 / H: 128.25)
• UK: The 2-Yr yield is down 0.4bps at 0.06%, 5-Yr is up 0.1bps at 0.359%, 10-Yr is up 0.8bps at 0.781%, and 30-Yr is up 0.9bps at 1.324%.
• Jun BTP futures (IK) up 23 ticks at 149.22 (L: 148.97 / H: 149.36)
• Jun OAT futures (OA) up 17 ticks at 162.37 (L: 162.16 / H: 162.46)