EGBs-GILTS CASH CLOSE: Gilts Underperform Again

Bunds outperformed Gilts for a second consecutive session, settling into a risk-off tone going into the weekend, amid continued concern over the Omicron variant, and ahead of a less liquid holiday period.

• Gilts were basically flat on the session as the market continued to digest Thursday's semi-surprise rate increase.
• BoE's Pill noted uncertainty of the impact of rate hikes, as well as "genuine two-sided uncertainty" over the economic impact of Omicron.
• We published our BOE and ECB meeting reviews today, see our website / emails for full analysis.
• Among periphery EGBs, BTP spreads reversed Thursday's widening, with Greece giving back some post-ECB gains.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is down 3bps at -0.72%, 5-Yr is down 2.4bps at -0.607%, 10-Yr is down 3bps at -0.378%, and 30-Yr is down 3.2bps at -0.037%.
• UK: The 2-Yr yield is up 0.1bps at 0.509%, 5-Yr is up 0.4bps at 0.614%, 10-Yr is up 0.2bps at 0.759%, and 30-Yr is up 1.4bps at 0.932%.
• Italian BTP spread down 4.9bps at 127.3bps / Greek up 2.1bps at 158.4bps