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EGBs and Bund- Huge rallies

BONDS
  • A massive fast market session for EGBs and Bund, with some large trading ranges across peripherals and core Bonds.
  • All of the action has been in Govies and Rate markets across multi assets, today.
  • BTP is back at session high following the "ECB Shouldn’t Exit Stimulus Before Gauging War Impact, Rehn said ".
  • Next yield support for BTP is at 1.386%, and reference 145.23, this would equate today to 145.68.
  • Peripherals are outperforming, and spread are all tighter versus the German 10yr.Italy is in the lead, given the massive rally in BTP, now 12.4bps tighter.
  • Porugal and Spain are 7bps and 5.6bps tighter respectively.
  • Looking ahead, BoE Saunders, Mann, Fed Bostic and Mester.
  • But most investors awaits on Fed Powell's testimony tomorrow..
  • Note that the text is set to be released tonight sometimes after the US close, but no set time has been confirmed.
  • Gilt futures are up 1.97 today at 123.37 with 10y yields down -21.7bp at 1.191% and 2y yields down -18.5bp at 0.845%.
  • Bund futures are up 3.17 today at 170.21 with 10y Bund yields down -17.4bp at -0.42% and Schatz yields down -16.7bp at -0.706%.
  • BTP futures are up 4.24 today at 145.39 with 10y yields down -30.0bp at 1.405% and 2y yields down -23.8bp at -0.264%.
  • OAT futures are up 3.49 today at 161.77 with 10y yields down -21.4bp at 0.390% and 2y yields down -17.2bp at -0.635%.

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