EGBs-GILTS: Bunds Drop As Deutsche Hit From Archegos "Limited"

Bunds and Gilts have come well of session highs in the last few minutes, reversing modest bull flattening, as market participants digest the potential implications the Archegos hedge fund blow-up last week.

• Headlines on Bloomberg (0851BST) that Deutsche Bank exposure to the Archegos episode seem "much more limited than other banks" driving Bunds lower. Equities mixed, and BTP spreads only a bit wider to open the week.
• That said, fairly limited volumes prior to the Deutsche headlines.
• A light day/week (holiday-shortened) calendar-wise. We get UK lending data at 0930BST. No further scheduled speakers (ECB's de Cos noted TLTROs should be part of ECB's normal toolbox).

Latest levels:

• Jun Bund futures (RX) down 19 ticks at 171.93 (L: 171.91 / H: 172.34)
• Jun Gilt futures (G) down 11 ticks at 128.38 (L: 128.38 / H: 128.64)
• Jun BTP futures (IK) down 33 ticks at 149.65 (L: 149.61 / H: 150.2)
• Italy / German 10-Yr spread 1bps wider at 97.4bps