EGBs-GILTS: BTP Yield Touches New All-Time Low

While Bunds and Gilts traded with little direction, BTPs were the star of the session, with the 10-Yr yield touching a fresh all-time low of 0.504% before retracing higher.

• A fairly constructive if largely uneventful morning session (no 1st tier data. no issuance and no speakers) ahead of US Nonfarm payrolls. While we saw some knee-jerk downside price action on the latter, ultimately Gilts and Bunds settled in ranges.
• The ECB speaker slate is a little more active next week, with Lagarde among others appearing. Plenty of supply too, including the UK, EFSF, Netherlands, Austria, Germany, Portugal, and Italy.

Closing Levels / 10-Yr Periphery EGB Spreads:

• Germany: The 2-Yr yield is up 0.3bps at -0.701%, 5-Yr is up 0.4bps at -0.73%, 10-Yr is up 0.3bps at -0.519%, and 30-Yr is up 0.5bps at -0.126%.
• UK: The 2-Yr yield is up 0.7bps at -0.128%, 5-Yr is up 1.2bps at -0.044%, 10-Yr is up 0.4bps at 0.288%, and 30-Yr is down 0.3bps at 0.87%.
• Italian BTP spread down 3bps at 105bps / Spanish down 0.6bps at 56bps