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EGBs-GILTS: Bull Flattening Early

BOND SUMMARY

Bunds and Gilts are on the front foot amid bull flattening with periphery spreads a little tighter early Tuesday, with issuance and central bank speakers eyed.

  • Equities mixed, dollar weaker in the early going.
  • Several bill sales today (some making up for Monday's holiday), plus Dutch E2bln 30-Yr DSL sale, and expected Gilt linker syndication.
  • Speakers include ECB's Villeroy (1400BST) and Lane (1500BST), with BOE's Tenreyro later (1700BST).
  • In data, Gov't borrowing revised lower; German IFO up at 0900BST.

Latest levels:

  • Jun Bund futures (RX) up 20 ticks at 169.52 (L: 169.29 / H: 169.58)
  • Jun Gilt futures (G) up 8 ticks at 128.16 (L: 128.12 / H: 128.29)
  • Jun BTP futures (IK) up 22 ticks at 146.34 (L: 146.24 / H: 146.42)
  • Italy / German 10-Yr spread 1bps tighter at 115.4bps

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