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EGBs-GILTS CASH CLOSE: Constructive Pre-PMI Session

BONDS

Bunds and Gilts advanced modestly Tuesday for the 2nd consecutive session in light trade.

  • Bank of Lithuania Pres Simkus told MNI that the ECB "definitely need a 50bps hike" at the December meeting, but asked "do we need 75bps?", calling it premature to make that judgment.
  • Eurozone Nov consumer confidence was weak but slightly beat expectations.
  • GGBs outperformed - while it wasn't a market-mover, they were underpinned by the EU's finding that Greece has done enough to qualify for the final disbursement of debt relief.
  • Attention turns to flash PMI data Wednesday morning.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

  • Germany: The 2-Yr yield is up 0.9bps at 2.11%, 5-Yr is down 1bps at 1.963%, 10-Yr is down 1.6bps at 1.978%, and 30-Yr is down 2.1bps at 1.89%.
  • UK: The 2-Yr yield is down 4.6bps at 3.142%, 5-Yr is down 5.3bps at 3.221%, 10-Yr is down 4.9bps at 3.137%, and 30-Yr is up 0.9bps at 3.316%.
  • Italian BTP spread down 1.1bps at 193.5bps / Greek down 1.5bps at 226bps

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