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EGBs-GILTS CASH CLOSE: Capping A Strong Week

BONDS

The German and UK curves bull flattened Friday, consolidating a strong week. Periphery spreads ended the session marginally wider but likewise capped a solid weekly performance.

  • Global FI hit turbulence at 1330BST on the release of US employment data, but the report was mixed and Bunds/Gilts ended up largely unchanged.
  • Little key data apart from the US payrolls, no supply, and not much meaningful central bank speak.
  • We get a few ECB speakers over the weekend including Schnabel and Villeroy.

Closing yields/10-Yr Spreads To Germany:

  • Germany: The 2-Yr yield is down 0.4bps at -0.671%, 5-Yr is down 1.6bps at -0.605%, 10-Yr is down 3.4bps at -0.235%, and 30-Yr is down 3.3bps at 0.273%.
  • UK: The 2-Yr yield is down 1bps at 0.058%, 5-Yr is down 1.9bps at 0.318%, 10-Yr is down 2.7bps at 0.703%, and 30-Yr is down 2.1bps at 1.226%.
  • Italian BTP spread up 0.3bps at 100.7bps/Spanish up 0.6bps at 60.5bps

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