Free Trial

EGBs-GILTS CASH CLOSE: Lockdown Concerns

BONDS

Core FI rallied throughout the day with a prevailing risk-off tone globally, with European COVID/lockdown concerns continuing to mount. Germany's announcement of a strict Easter lockdown was a focal point overnight, while the UK-EU vaccine export debate simmered.

  • Gilts outperformed Bunds; periphery spreads tightened slightly after earlier widening, with a sizeable rally in the afternoon. Weekly ECB PEPP purchase data show only E0.9bln of redemptions last week, broadly in line w expectations.
  • Issuance highlight was E13bn total of EU SURE dual-tranche 5Y/25Y via syndication. Germany sells E4bn of Bund Wednesday, while the UK sells linkers.
  • UK jobs data was a little better than expected, with earnings in line. Looking forward to Weds, the scheduled highlight is flash March PMIs.

Closing yields/10-Yr Spreads to Bunds:

  • Germany: The 2-Yr yield is down 0.9bps at -0.709%, 5-Yr is down 1.6bps at -0.67%, 10-Yr is down 3bps at -0.341%, and 30-Yr is down 3.4bps at 0.231%.
  • UK: The 2-Yr yield is down 2.8bps at 0.046%, 5-Yr is down 4bps at 0.33%, 10-Yr is down 5.1bps at 0.763%, and 30-Yr is down 5.3bps at 1.288%.
  • Italian BTP spread down 1.5bps at 94.3bps / Spanish spread down 1.5bps at 63.4bps

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.