EGBs-GILTS CASH CLOSE: Re-Steepening Ahead Of US Jobs Report

European curves partially reversed the sharp flattening of the prior two sessions on Thursday.

• After gapping lower on the open (with no discernable trigger - ECB's Villeroy reiterated his view that peak of inflation is likely to be seen in H1), US data was central to the EGB/Gilt rally.
• Weaker-than-expected US jobless claims figures providedsome relief ahead of Friday's closely-eyed jobs report.
• The German curve twist steepened, with the UK's bear steepening.
• Periphery EGB spreads tightened as risk assets rallied on the US jobless claims miss.
• MNI's Policy Team took a look ahead at the BoE's meeting in 2 weeks' time, eyeing a rate hold unless data surprises.
• Friday's European slate is highlighted by UK GDP and final German CPI. ECB's Panetta appears as well.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is down 5.9bps at 3.277%, 5-Yr is down 3.9bps at 2.794%, 10-Yr is down 0.3bps at 2.643%, and 30-Yr is up 4.6bps at 2.589%.
• UK: The 2-Yr yield is up 2bps at 3.811%, 5-Yr is up 1.8bps at 3.688%, 10-Yr is up 3.1bps at 3.796%, and 30-Yr is up 4.1bps at 4.122%.
• Italian BTP spread down 3.6bps at 174.6bps / Spanish down 1.5bps at 100.2bps