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EGBs/Gilt - At the upper end of the ranges going into the weekend

BONDS
  • EGBs and Bund remain underpinned this afternoon, going into a long US bank holiday weekend.
  • Peripherals are mostly wider against the German 10yr, Italy is in the lead by 1.9bps.
  • US Wholesales inventories and PCE deflator were mostly inline.
  • Gilt has outperformed Germany, translating in a 2.6bps tighter Gilt/Bund spread.
  • Looking ahead, after market rating from Fitch on Italy.
  • Gilt futures are up 0.76 today at 118.70 with 10y yields down -6.9bp at 1.898% and 2y yields down -3.3bp at 1.406%.
  • Bund futures are up 0.66 today at 153.92 with 10y Bund yields down -4.9bp at 0.947% and Schatz yields down -0.6bp at 0.334%.
  • BTP futures are up 0.60 today at 129.69 with 10y yields down -2.6bp at 2.866% and 2y yields up 1.0bp at 0.810%.
  • OAT futures are up 0.68 today at 146.31 with 10y yields down -5.0bp at 1.461% and 2y yields down -0.8bp at 0.208%.

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