EGB/GILTS SUMMARY

EGBs continue to trade within the morning ranges, albeit still better offered and in the red, after PMIs beat in Europe and the US.

• US ADP had more impact in FX, with the street turning their attention towards US NFP tomorrow.
• Spreads are still dominating volumes with pace running circa 70% done.
• Most peripheral spreads trades near flat versus Germany, although Greece is the standout at 2bps tighter.
• Gilts a little perplexed by the continued under performance against EGBs, given some renewed concerns regarding potential full lockdown liftoff, after the UK puts Portugal back in the amber travel list.
• The move lower in Gilts, has push the UK/German spread 1.6bp wider.
• Looking ahead, BoE Bailey, Fed Bostic, Kaplan, Harker, Quarles are still scheduled for the session
• Bund futures are down -0.18 today at 169.97 with 10y Bund yields up 1.3bp at -0.186% and Schatz yields unch at -0.670%.
• BTP futures are down -0.02 today at 147.75 with 10y yields up 1.1bp at 0.888% and 2y yields up 0.2bp at -0.349%
• OAT futures are down -0.12 today at 160.49 with 10y yields up 1.3bp at 0.172% and 2y yields up 0.7bp at -0.650%.
• Gilt futures are down -0.27 today at 127.93 with 10y yields up 2.9bp at 0.827% and 2y yields up 1.9bp at 0.074%.