EGBs-GILTS CASH CLOSE: Gilts Recover Some Losses

Gilts retraced some of the prior session's steep losses, while the Bund curve weakened in mixed fashion Thursday. This was a much quieter session compared with those of the prior week, with the US cash Treasury holiday sapping liquidity.

• UK GDP was the session's major data point, disappointing on the initial Q3 reading, and arguably helping underpin the short end of the curve.
• Periphery spreads widened slightly, led by Greece (10Y out 4bp vs Germany).
• While there were multiple central bank speakers today, none made much market impact.
• Following Ireland and Italy's auctions today, no supply Friday.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is up 0.7bps at -0.693%, 5-Yr is up 2bps at -0.516%, 10-Yr is up 1.6bps at -0.231%, and 30-Yr is up 1.4bps at 0.073%.
• UK: The 2-Yr yield is down 1.1bps at 0.565%, 5-Yr is down 1bps at 0.705%, 10-Yr is down 0.5bps at 0.92%, and 30-Yr is up 0.6bps at 1.06%.
• Italian BTP spread up 1bps at 119.3bps / Greek up 4bps at 143.8bps