EGBs-GILTS CASH CLOSE: Mixed Curves Post-PMIs, Pre-BoE

Bunds and Gilts traded mostly stronger Wednesday though curves were mixed, with equities retreating, and the Bank of England decision awaited Thursday.

• The German curve bull flattened to 10-Yrs, while the UK short-end outperformed. Periphery spreads widened slightly.
• Flash Jun PMI data was mixed, with France and the UK disappointing, and Germany beating expectations. Global core FI ticked higher on a US PMI miss in the afternoon.
• UK sold GBP0.4bln in linkers; Germany allotted E2.06bln of Bund; Slovenia syndicated E1bln of sustainable 10Y.
• Looking ahead to Thursday, we get the BoE decision - our preview went out today. We also get some confidence data (France; German IFO). No supply scheduled for Thursday, though today Italy announced a syndication for Apr-29 CCTeu.

Closing German/UK Yields And 10-Yr Spreads To Germany

• Germany: The 2-Yr yield is down 0.6bps at -0.653%, 5-Yr is down 1.2bps at -0.568%, 10-Yr is down 1.4bps at -0.178%, and 30-Yr is down 0.9bps at 0.308%.
• UK: The 2-Yr yield is down 1.9bps at 0.089%, 5-Yr is down 0.5bps at 0.384%, 10-Yr is unchanged at 0.78%, and 30-Yr is up 1.3bps at 1.28%.
• Italian BTP spread up 1.1bps at 107.3bps / Spanish spread up 0.3bps at 62.8bps