Free Trial

EGBs-GILTS: Another Strong Start


A strong start for European FI across the board Tuesday, with the Gilt and Bund curves bull flattening as equities weaken on global COVID / geopolitical / economic slowdown concerns.

  • It's the 2nd consecutive risk-off start (equities lower, core bonds higher). Though worth recalling Monday's session started this way, but then Bunds and Gilts reversed lower.
  • Bunds remain in consolidation mode for now, between 176.21 to 177.61 range (last 177.07).
  • Unlike Monday, BTPs have kept pace, with the 10Y spread vs Germany marginally tighter, though other periphery EGBs are a little tighter.
  • In supply, UK sells GBP2bln of Jan-46 Gilt and Germany sells E6bln of Schatz.
  • Earlier, UK employment data was largely in line (little market impact). Eurozone 2Q prelim GDP out at 1000BST. More attention globally on US retail sales at 1330BST, though.

Latest levels:

  • Sep Bund futures (RX) up 27 ticks at 177.07 (L: 176.71 / H: 177.18)
  • Sep Gilt futures (G) up 12 ticks at 129.92 (L: 129.89 / H: 130.08)
  • Sep BTP futures (IK) up 21 ticks at 155.28 (L: 155.14 / H: 155.37)
  • Italy / German 10-Yr spread 0.2bps tighter at 103.2bps

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.