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EGBs-GILTS: BTP Sale, BOE Speakers Eyed

BOND SUMMARY
Bunds/Gilts are off session lows within ranges as equities have weakened in early trade, but hardly decisive in terms of direction. BTP spreads fairly flat as 30-Yr bond offering gets underway.
  • We continue to await news on the usual themes: COVID, US Fiscal, Brexit.
  • In data, slight misses in French and German confidence numbers; EZ cons confidence out later today, UK CBI too.
  • In issuance, Italy selling 30-Yr BTP via syndication, IPT BTPS+10 area. UK selling Jul-35 Gilt for GBP2.25bln and Oct-50 for GBP1.75bln.
  • BOE's Haldane (0930BST) and Bailey (1025BST) speak this morning.

Latest levels:

  • Dec Bund futures (RX) down 8 ticks at 175.63 (L: 175.45 / H: 175.73)
  • Dec Gilt futures (G) down 21 ticks at 135.74 (L: 135.68 / H: 135.87)
  • Dec BTP futures (IK) down 7 ticks at 148.77 (L: 148.62 / H: 148.9)
  • Italy / German 10-Yr spread 0.1bps wider at 137.1bps

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