EGBs-GILTS CASH CLOSE: Flatter Curves

The UK and German curves flattened modestly despite equities gaining. With a light data calendar and no material headlines (ECB Sept meeting accounts didn't move the needle), catalysts for price action have been few and far between. Italy and the BTP have also been in focus, after the 3yr yield hit record lows, and 10yr traded to 0.754%, just a touch from the record low at 0.751%.

Tomorrow will see the release of Aug UK monthly GDP, and industrial production for the UK, France and Italy - as well as an appearance by BoE's Haldane .Closing levels:

• Germany: The 2-Yr yield is down 1.7bps at -0.709%, 5-Yr is down 2.8bps at -0.72%, 10-Yr is down 3bps at -0.523%, and 30-Yr is down 3.6bps at -0.095%.
• UK: The 2-Yr yield is down 0.8bps at -0.021%, 5-Yr is down 0.6bps at -0.028%, 10-Yr is down 1.4bps at 0.289%, and 30-Yr is down 1.5bps at 0.865%.

10-Yr Periphery EGB Spreads:

• Italian BTP spread up 0.4bps at 128.2bps
• Spanish bond spread down 1.1bps at 72.4bps
• Portuguese PGB spread down 0.2bps at 72.4bps
• Greek bond spread down 1.5bps at 141.7bps