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EGBs-GILTS: Bull Flattening To Start The Week

BOND SUMMARY

Curves have bull flattened to start the week, though fairly narrow trading ranges seen so far. Periphery spreads a little tighter.

  • EUR and GBP on the front food, equities mixed.
  • Not many catalysts overnight, and little impactful data, but we get plenty of European central bank speakers today: ECB's de Cos (0900BST and 1230BST), Panetta (0915BST), Stournaras (1105BST), Weidmann (1300BST) and de Guindos (1600BST), plus BoE's Haldane (1300BST).
  • Belgium sells E3.8bln of OLO (including Greens).

Latest levels:

  • Sep Bund futures (RX) up 18 ticks at 171.95 (L: 171.71 / H: 171.97)
  • Sep Gilt futures (G) up 9 ticks at 127.64 (L: 127.50 / H: 127.64)
  • Sep BTP futures (IK) up 31 ticks at 150.42 (L: 150.01 / H: 150.44)
  • Italy / German 10-Yr spread 1.2bps tighter at 106.6bps

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