EGBs-GILTS CASH CLOSE: Gilts Underperform (Alongside GBP)

Wednesday saw some retracement from Tuesday's yield rises for the most part, but Gilts underperformed Bunds and periphery spreads traded mixed.

• Not much thematically tying moves together (equities bounced, EUR and especially GBP weakened), more of a correction of the previous session's big moves.
• Though UK assets in general appeared weaker with EU tensions (over fishing) and energy supply problems making headlines all day.
• BTPs outperformed the space, with spreads/10Y Bund tightening 1.7bp.
• Supply concluded the week with BTP and Bund sales this morning.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is down 0.5bps at -0.688%, 5-Yr is down 0.9bps at -0.558%, 10-Yr is down 1.4bps at -0.213%, and 30-Yr is down 1.3bps at 0.251%.
• UK: The 2-Yr yield is down 0.4bps at 0.405%, 5-Yr is down 0.3bps at 0.625%, 10-Yr is down 0.3bps at 0.991%, and 30-Yr is up 1bps at 1.335%.
• Italian BTP spread down 1.7bps at 103.7bps / Spanish up 1bps at 65.1bps