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EGBs-GILTS CASH CLOSE: Gilts Get A Remit Boost

BONDS

GIlts easily outperformed Bunds Wednesday as UK debt remit plans came in at the very low end of expectations alongside the government's Spring Statement.

  • The overall theme in European FI was a reversal of Tuesday's price action, with Bund and Gilt yields closing at/near the lows.
  • Though it was a generally risk-off session, with equities dipping, periphery spreads mostly held in (BTP/Bund flat, Spain a little tighter).

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

  • Germany: The 2-Yr yield is down 1.8bps at -0.253%, 5-Yr is down 3.1bps at 0.192%, 10-Yr is down 3.9bps at 0.466%, and 30-Yr is down 5.3bps at 0.619%.
  • UK: The 2-Yr yield is down 6.5bps at 1.35%, 5-Yr is down 6bps at 1.402%, 10-Yr is down 8.1bps at 1.627%, and 30-Yr is down 7.4bps at 1.848%.
  • Italian BTP spread up 0.1bps at 151.8bps / Spanish down 1.1bps at 90.4bps

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