EGBs-GILTS CASH CLOSE: Euro CPI Data Fails To Convince Ahead Of ECB, BoE

The German curve twist flattened modestly, underperforming its bull steepening UK While Italian and eurozone core flash CPI prints came in stronger than expected, the eurozone headline print was very soft, helping boost Bunds to session highs.

• However, MNI analysis pointed to the possibility that Eurostat used a low estimate for Germany's as yet unreleased inflation figure, which both obscures the signal from today's readings and heightens potential volatility for the delayed German release as well as the Eurozone final number.
• Markets faded the headline CPI-related jump, with strong US job openings and ISM prices data helping keep a lid on global core FI in the afternoon.
• All eyes after the cash close are on the Federal Reserve decision, with attention swiftly turning to ECB and BoE meetings (our previews are, respectively, here and here).

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is up 2.1bps at 2.672%, 5-Yr is up 0.8bps at 2.318%, 10-Yr is down 0.2bps at 2.284%, and 30-Yr is up 0.3bps at 2.227%.
• UK: The 2-Yr yield is down 2.9bps at 3.439%, 5-Yr is down 3.6bps at 3.179%, 10-Yr is down 2.5bps at 3.307%, and 30-Yr is down 0.1bps at 3.712%.
• Spanish bond spread up 0.1bps at 99.7bps / Greek up 0.4bps at 202.1bps