EGBs-GILTS CASH CLOSE: BoE Fallout Continues

UK yields continued to drop sharply Friday following Thursday's unexpected BoE rate hold, once again dragging down yields across the European FI space.

• Yields continued their drop in the afternoon despite a better-than-expected US jobs report.
• Among other highlights, 30Y yields outperformed and have now erased all the late Sep/Oct rise, while 2-/5Y yields completed their biggest weekly fall since 2009 (2Y -30.2bp, 5Y -27.1bp).
• Though Bund 10Y yields fell sharply (w biggest weekly drop since the pandemic), periphery EGBs kept pace, with spreads flat/only slightly wider.
• Note, Moody's reviews Italy after the close, though stable outlook.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is down 1.9bps at -0.729%, 5-Yr is down 2bps at -0.579%, 10-Yr is down 5.6bps at -0.28%, and 30-Yr is down 9.2bps at 0.067%.
• UK: The 2-Yr yield is down 9bps at 0.408%, 5-Yr is down 9.5bps at 0.565%, 10-Yr is down 9.9bps at 0.845%, and 30-Yr is down 12.8bps at 1.016%.
• Italian BTP spread unchanged at 115.7bps / Greek up 2.9bps at 136.9bps