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EGBs-GILTS: BoE Decision And EGB Supply In Focus

BOND SUMMARY

A weak start across the board although within narrow ranges, with Bund and Gilt curves marginally steeper. A slow day in terms of data means the BoE decision, Spanish/French supply, and Italian politics are the focal points.

  • BoE decision at 1200GMT; press conference livestreamed starting 1300GMT. Contact us if you haven't yet seen our preview.
  • Spain sells up to E6bn of Bono/Obli and E0.75bn linkers; France sells up to E11bn of L-T OATs.
  • Attention remains on Italy as would-be PM Draghi attempts to form a coalition; BTP spreads flat.
  • ECB's Econ Bulletin published at 0900GMT; de Cos speaks as 1220GMT.
Latest levels:
  • Mar Bund futures (RX) down 7 ticks at 176.40 (L: 176.23 / H: 176.46)
  • Mar Gilt futures (G) down 8 ticks at 133.47 (L: 133.39 / H: 133.5)
  • Mar BTP futures (IK) down 3 ticks at 151.74 (L: 151.43 / H: 151.75)
  • Italy / German 10-Yr spread 0.1bps wider at 105.2bps

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