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Lower In Asia; $1,800/oz In The Balance

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Bunds and Gilts found a bit of a footing toward the end of Thursday's session, but make no mistake that it was a very tough day across the curves. BTP spreads widened too, with French 10-Yr yields going positive for the first time since June 2020.

  • While the main theme globally was belly/10-Yr weakness, perhaps notable was the relatively stronger performance in 30-Yr Gilts - the UK curve bear flattened as BoE cuts were priced out.
  • Italy saw lowest cover ratio for a 5-yr BTP since June 2020 (though this was somewhat expected due to large size); Tesoro released Green Bond framework.
  • Bunds briefly ticked higher on comments by ECB's Lane reiterating the bank watching yields closely. But mixed confidence data this morning largely shrugged off.
  • Friday sees some prelim inflation data and a few cenbank speakers (Schnabel, Haldane).

Closing yields/10-Yr Spreads to Bunds:

  • Germany: The 2-Yr yield is up 3bps at -0.652%, 5-Yr is up 6.5bps at -0.545%, 10-Yr is up 7.2bps at -0.232%, and 30-Yr is up 3.5bps at 0.244%.
  • UK: The 2-Yr yield is up 7.5bps at 0.107%, 5-Yr is up 8.8bps at 0.366%, 10-Yr is up 5.2bps at 0.784%, and 30-Yr is up 1.2bps at 1.389%.
  • Italian BTP spread up 4bps at 103.1bps / Spanish spread up 1.3bps at 70.8bps
MNI London Bureau | +44 203-865-3807 |
MNI London Bureau | +44 203-865-3807 |

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