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JGB TECHS

(U1) Tilted Higher

AUSSIE 10-YEAR TECHS

(U1) Uptrend Weakening

US TSYS SUMMARY

Bullard Kickstarts Reflation Unwind Theme

AUDUSD TECHS

Fresh 2021 Lows

BONDS

Bunds outperformed for most of the session but came back to the pack, and it was a mixed risk picture overall with core FI in general doing fine and periphery spreads widening despite higher equities.

  • BoE unch decision didn't have much of an impact. Brexit headlines continue to be mixed-to-positive, with most concerns cited today being of a procedural variety (ie when can bill passage be made).
  • Late session brought news that the UK reported a record 35.6k COVID cases - but Gilts fell.
  • On Friday, UK Nov retail sales is the clear data highlight, with German IFO following thereafter. No bond supply and no central bank speakers.

Closing Levels / 10-Yr Periphery EGB Spreads:

  • Germany: The 2-Yr yield is unchanged at -0.725%, 5-Yr is down 0.2bps at -0.746%, 10-Yr is down 0.3bps at -0.57%, and 30-Yr is up 0.7bps at -0.155%.
  • UK: The 2-Yr yield is up 2.6bps at -0.051%, 5-Yr is up 2.5bps at -0.006%, 10-Yr is up 1.5bps at 0.287%, and 30-Yr is up 1.3bps at 0.847%.
  • Italian BTP spread up 0.7bps at 111bps
  • Spanish bond spread up 0.9bps at 59.9bps
  • Portuguese PGB spread up 2bps at 58.1bps
  • Greek bond spread up 0.4bps at 115.4bps
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com