EGB/GILTS SUMMARY

EGBs started the session in the green, but we have since faded, as the US start to come in, on positioning and likely squaring heading into the ECB.

• Bund are leaning bear steeper, with upside limited by early Spanish and French supplies.
• Peripheral have traded in tandem with core and as such spread trade mostly flat versus the German 10yr.
• Gilts have held onto gains, with the Pound coming under small pressure, but very little new in terms of clear catalyst.
• Looking ahead, focus turns to the ECB and presser, EC Consumer Confidence is the last EU data left on the calendar.
• On the other side of the pound, US IJC is the most notable data
• Bund futures are down -0.05 today at 170.83 with 10y Bund yields up 0.4bp at -0.259% and Schatz yields up 0.5bp at -0.696%.
• BTP futures are down -0.05 today at 148.26 with 10y yields up 0.8bp at 0.760% and 2y yields up 1.2bp at -0.352%.
• OAT futures are down -0.06 today at 161.48 with 10y yields up 0.5bp at 0.078% and 2y yields up 1.0bp at -0.653%.
• Gilt futures are up 0.09 today at 128.76 with 10y yields down -0.4bp at 0.734% and 2y yields up 0.6bp at 0.038%.