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Review 10Y Auction, Small Tail


Rallies Off Tuesday Low


Greenback Under Pressure As Aussie Extends Gains


10Y WI

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A further moderation in energy prices helped support core European FI in a fairly rangebound session for core instruments Thursday, with Friday's U.S. payrolls figure still dominating attention.

  • Gilts underperformed, with comments by BoE's new chief econ Huw Pill appearing to put him in a majority at the bank who see guidance conditions already "met".
  • It was a generally risk-on session with strong equities, and periphery EGB spreads tightened, with ECB's Stournaras pushing against market rate hike pricing, and a BBG sources story on the ECB considering anew post-crisis bond-buying program.
  • ECB minutes showed officials stressing PEPP flexbility.
  • Supply this morning came from France (E10bn) and Spain (E4.9bn).

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

  • Germany: The 2-Yr yield is down 1bps at -0.704%, 5-Yr is down 1bps at -0.559%, 10-Yr is down 0.3bps at -0.185%, and 30-Yr is up 0.1bps at 0.302%.
  • UK: The 2-Yr yield is up 0.4bps at 0.474%, 5-Yr is up 0.7bps at 0.698%, 10-Yr is up 0.6bps at 1.077%, and 30-Yr is up 0.1bps at 1.429%.
  • Italian BTP spread down 3.3bps at 104.1bps / Greek down 2.9bps at 107.3bps