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EGBs-GILTS: Weak Start

BOND SUMMARY

Bunds and Gilts are marginally weaker to begin Friday, with periphery spreads a little wider. A largely risk-on atmosphere is prevailing, with positive US infrastructure stimulus prospects eyed.

  • Data earlier showed GfK consumer confidence miss expectations in the UK and beat in Germany; Spanish producer prices decelerated in May vs Apr M/M.
  • Little left on the week's docket, Italy confidence numbers at 0900BST.
  • ECB's de Cos speaks at 1130BST.
  • Italy sells sell E3.75B of short-term BTP and BTPei.

Latest levels:

  • Sep Bund futures (RX) down 10 ticks at 172.23 (L: 172.14 / H: 172.3)
  • Sep Gilt futures (G) down 3 ticks at 127.83 (L: 127.77 / H: 127.95)
  • Sep BTP futures (IK) down 17 ticks at 150.67 (L: 150.57 / H: 150.9)
  • Italy / German 10-Yr spread 1bps wider at 106.3bps

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