June 17, 2022 16:34 GMT
EGBs saw fairly wide swings through Friday trade, though were ultimately bound within Thursday's ranges and with less volatility than in the prior two sessions.
- Core FI yields were directionless for most of the session, ultimately resolving lower toward the weekly close as equities and oil prices dropped along a strengthening USD.
- Periphery EGB spreads held their early narrowing on overnight comments by Lagarde nodded to the ECB containing spreads. Bunds bull steepened and outperformed Gilts.
- The UK curve twist flattened, with more BoE hike bets boosting 2Y yields.
Closing Yields / 10-Yr Periphery EGB Spreads To Germany:
- Germany: The 2-Yr yield is down 7.3bps at 1.094%, 5-Yr is down 8.6bps at 1.457%, 10-Yr is down 5.3bps at 1.661%, and 30-Yr is up 0.2bps at 1.851%.
- UK: The 2-Yr yield is up 8.9bps at 2.204%, 5-Yr is up 3.5bps at 2.207%, 10-Yr is down 1.9bps at 2.498%, and 30-Yr is down 0.8bps at 2.667%.
- Italian BTP spread down 9.7bps at 193.7bps / Greek down 18.6bps at 237bps
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