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EGBs-GILTS: Soft Start As UK Returns From Holiday

BOND SUMMARY

A weak and choppy start for Bunds and Gilts Tuesday, with the latter resuming trade after Monday's holiday.

  • Periphery EGB spreads trading mixed, BTPs wider vs Bunds after initial tightening.
  • A light schedule today. UK Final Apr PMI at 0930BST, with money supply/credit data out at the same time.
  • ECB's Villeroy speaks at 0900BST.
  • Austria sells E1.5bn of RAGB and Germany E0.7bn of linkers.

Latest levels:

  • Jun Bund futures (RX) down 18 ticks at 169.98 (L: 169.91 / H: 170.23)
  • Jun Gilt futures (G) up 1 ticks at 127.68 (L: 127.64 / H: 127.88)
  • Jun BTP futures (IK) down 11 ticks at 147.37 (L: 147.33 / H: 147.79)
  • Italy / German 10-Yr spread 0.8bps wider at 108.6bps

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