EGB/GILTS SUMMARY- Rallies on NFP miss

EGBs rallied this afternoon following the disappointing US NFP.

• The data saw another miss and insufficient upward revisions to justify huge optimism in these numbers.
• This will likely put some cold water on tensions regarding tapering talks at the next Fed meeting.
• German curve is in turn Bull flatter, with longer end outperforming.
• Peripheral are lagging somewhat behind pushing the spreads a touch wider on the session.
• Gilts have traded in line with semi core, all led by the US treasury rally.
• Attention now quickly turns to the ECB next week.
• Looking ahead, after market, rating from Fitch on Italy, DBRS on Germany and Moodys on Turkey
• Bund futures are up 0.40 today at 170.34 with 10y Bund yields down -2.9bp at -0.213% and Schatz yields down -0.1bp at -0.676%
• BTP futures are up 0.31 today at 147.98 with 10y yields down -2.4bp at 0.873% and 2y yields down -2.2bp at -0.368%
• OAT futures are up 0.29 today at 160.75 with 10y yields down -2.1bp at 0.153% and 2y yields down -0.4bp at -0.656%
• Gilt futures are up 0.39 today at 128.28 with 10y yields down -4.5bp at 0.795% and 2y yields down -1.7bp at 0.066%.