EGBs-GILTS CASH CLOSE: Awaiting Jackson Hole

The UK and German curves bear steepened once again, with plenty of supply and a rebound in equities weighing on the long end, along perhaps with some position squaring ahead of the Jackson Hole symposium kicking off tomorrow. Periphery spreads tightened.

After E10.25bln of EGB supply today (Italy, Germany, Portugal, and Finland syndication), not to mention GBP2.75bln in Gilts, we get a breather tomorrow.

However, with little data in the offing, the session will be focused on a speech by US Fed Chair Powell (1410BST). Closing levels:

• Germany: The 2-Yr yield is up 1.2bps at -0.644%, 5-Yr is up 1.4bps at -0.635%, 10-Yr is up 1.6bps at -0.415%, and 30-Yr is up 2.6bps at 0.036%.
• UK: The 2-Yr yield is up 0.5bps at -0.016%, 5-Yr is up 1.7bps at 0.014%, 10-Yr is up 3.9bps at 0.302%, and 30-Yr is up 4.1bps at 0.882%.

10-Yr Periphery EGB Spreads:

• Italian BTP spread down 2.5bps at 143.2bps
• Spanish bond spread down 2.2bps at 79.1bps
• Portuguese PGB spread down 2.9bps at 80.6bps
• Greek bond spread down 1.2bps at 151.8bps