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EGBs-GILTS: Another Volatile Start With BoE Ahead

BOND SUMMARY

Bunds and Gilts have rebounded from an early drop, both up on the Thurs session despite equities pushing higher. Periphery spreads a little wider.

  • SNB (unch) and Norges Bank (0900GMT) the appetizer for BoE at midday GMT. Elsewhere we get ECB's Schnabel speaking at 1600GMT, de Guindos at 1730GMT.
  • In data, French business climate bounced back above expectations in December; only Eurozone final CPI data remains.
  • Mercifully little in the way of Brexit headlines, but sure to come up today.

Latest levels:

  • Mar Bund futures (RX) up 6 ticks at 177.61 (L: 177.34 / H: 177.63)
  • Mar Gilt futures (G) up 10 ticks at 134.63 (L: 134.36 / H: 134.67)
  • Mar BTP futures (IK) up 5 ticks at 152.14 (L: 151.95 / H: 152.16)
  • Italy / German 10-Yr spread 0.2bps wider at 110.5bps

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