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EGBS-GILTS CASH CLOSE: UK Curve Marginally Bear Steepens

BONDS

The UK curve marginally bear steepened Wednesday, with EGBs closed for the May 1 holiday.

  • Gilts started trade on the back foot, with yields jumping at the open on spillover from US Treasury weakness overnight.
  • A soft 10Y Gilt auction weighed mid-morning.
  • Yields peaked around midday London time, pulling back in the afternoon on mixed US data (soft private sector wage growth, job openings, and ISM manufacturing/versus strong ISM prices paid).
  • That left attention on the Federal Reserve decision and press conference after the cash close.
  • Thursday morning's schedule includes final April PMIs.

Closing Yields:

  • UK: The 2-Yr yield is up 0.5bps at 4.511%, 5-Yr is up 1.4bps at 4.265%, 10-Yr is up 1.9bps at 4.366%, and 30-Yr is up 1.7bps at 4.804%.
  • EGBs Cash Trading Closed

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