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EGBs-GILTS: Bright Start Fades With Supply Ahead

BOND SUMMARY

Core / semi-core FI has seen very modest weakness early Thursday, following a higher open.

  • This has come alongside an equity bounce from the lows (Eurostoxx futs tested Weds's worst levels) and a turn lower in the US dollar.
  • Little key data ahead. Spanish and French supply eyed later this morning.
  • BTP spreads a little tighter, with PM Draghi facing his final confidence vote today, in the lower house.
  • BOE's Saunders speaks at 1100GMT, while the ECB publishes the accounts of its most recent meeting at 1230GMT

Latest levels:

  • Mar Bund futures (RX) up 1 ticks at 175.05 (L: 174.87 / H: 175.26)
  • Mar Gilt futures (G) down 10 ticks at 131.21 (L: 131.1 / H: 131.37)
  • Mar BTP futures (IK) up 7 ticks at 151.89 (L: 151.66 / H: 151.98)
  • Italy / German 10-Yr spread 1bps tighter at 94.4bps

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