Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

EGBs-GILTS CASH CLOSE: Terminal ECB Pricing Ticks Higher On Knot


European curves steepened Wednesday with Gilts outperforming Bunds.

  • Fair bit of ECB commentary today, highlighted by MNI's event with Klaas Knot who said a 50bp hike was possible in May (as well as March) pending inflation developments. Kazaks called for "significantly" restrictive rates while de Guindos wouldn't rule out further hikes past March.
  • ECB cumulative hike pricing picked up about 3bp following the release of Knot's prepared text, though that faded; ECB and BoE terminal rates are now seen about 1bp higher than they began the day.
  • Eurozone swap spreads continued to tighten following yesterday's ECB sovereign deposit renumeration announcement.
  • Limited data out today, with more attention on the delayed German CPI readings out Thursday: see MNI's analysis here (1), here (2), and here (3)).
  • Thu morning also sees the Riksbank decision and comments from BoE's Bailey.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

  • Germany: The 2-Yr yield is up 0.8bps at 2.717%, 5-Yr is down 0.6bps at 2.368%, 10-Yr is up 1.4bps at 2.363%, and 30-Yr is up 1.9bps at 2.334%.
  • UK: The 2-Yr yield is down 4.4bps at 3.468%, 5-Yr is down 3.2bps at 3.185%, 10-Yr is down 0.4bps at 3.313%, and 30-Yr is up 1.8bps at 3.769%.
  • Italian BTP spread down 1.3bps at 186.7bps / Spanish up 0.6bps at 94.1bps

To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.