EGBs-GILTS CASH CLOSE: Gilts Bull Flatten Amid Mixed Brexit News

An impressive rally at the long-end in core FI, particularly in Gilts, with 30-Yr yields down over 8bps amid a strong bull flattening in the curve. Overall theme has been fading positive early week vaccine news.

• Gilts were boosted by continued mixed news on Brexit talk progress [BBC sources piece suggesting stalemate], helping push yields to session lows in the afternoon.
• Periphery EGB spreads closed mixed, BTPs very much outperforming; Greek short-end (2Yr) went into negative yield territory.
• On Friday, Eurozone Q3 prelim GDP highlights the data docket, while we get several BoE and ECB speakers.

Closing Levels / 10-Yr Periphery EGB Spreads:

• Germany: The 2-Yr yield is down 0.8bps at -0.723%, 5-Yr is down 2bps at -0.73%, 10-Yr is down 2.9bps at -0.536%, and 30-Yr is down 3.9bps at -0.112%.
• UK: The 2-Yr yield is down 3.7bps at -0.036%, 5-Yr is down 4.4bps at 0.015%, 10-Yr is down 6.5bps at 0.348%, and 30-Yr is down 8.3bps at 0.932%.
• Italian BTP spread down 2.5bps at 122bps
• Spanish bond spread up 0.4bps at 66.8bps
• Portuguese PGB spread up 0.7bps at 64bps
• Greek bond spread up 1.3bps at 134.1bps