Free Trial

EGBs-GILTS CASH CLOSE: Steepening Once Again

BONDS

Long-end Gilts underperformed, with both the UK and German curves bear steepening once again Tuesday - though not before some early flattening. Periphery spreads traded flat/slightly wider.

  • Gilt underperformance came amid Sterling weakness and ahead of the BoE meeting Thursday. Front-end yields actually fell on the day.
  • Spain sold E8B of 10Y via syndication; Netherlands sold E2B DSL at auction.
  • Wednesday's highlight is June flash PMIs; Germany sells 15-Yr bonds and UK sells Linkers.

Closing German/UK Yields And 10-Yr Spreads To Germany

  • Germany: The 2-Yr yield is up 0.5bps at -0.647%, 5-Yr is up 0.5bps at -0.556%, 10-Yr is up 0.7bps at -0.164%, and 30-Yr is up 1.4bps at 0.317%.
  • UK: The 2-Yr yield is down 1.7bps at 0.108%, 5-Yr is up 0.4bps at 0.389%, 10-Yr is up 1.1bps at 0.78%, and 30-Yr is up 4bps at 1.267%.
  • Italian BTP spread up 1.5bps at 106.2bps / Spanish spread unchanged at 62.5bps

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.