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EGBs-GILTS: Bunds Bear Steepening

BOND SUMMARY
  • Bunds are bear steepening slightly, with Gilts weaker-but-mixed and periphery spreads wider in choppy early trade (albeit within fairly narrow ranges).
  • Supply the major theme this morning, with equities mixed and not much data.
  • A very heavy issuance slate today: Netherlands, UK, Austria, Germany all coming to market and Belgium 10-Yr syndication underway.
  • BOE's Bailey now discussing the economy; In speakers, BOE's Broadbent (1000GMT) and ECB's de Cos (1720GMT) up later.

Latest levels:

  • Mar Bund futures (RX) down 15 ticks at 176.78 (L: 176.71 / H: 176.87)
  • Mar Gilt futures (G) down 13 ticks at 134.06 (L: 133.96 / H: 134.09)
  • Mar BTP futures (IK) down 20 ticks at 151.62 (L: 151.46 / H: 151.7)
  • Italy / German 10-Yr spread 1.4bps wider at 107.4bps

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