EGBs-GILTS CASH CLOSE: Peripheries Gain As Core Consolidates

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