EGBs-GILTS CASH CLOSE: UK Linkers And BTPs Make Moves

Bunds and Gilts opened Wednesday on the back foot following Tuesday's surge in risk appetite but yields fell over the session and finished not far from the lows.

• The morning's move to new record lows for Italian 10-Yr yields faded over the day however, with BTP spreads ultimately widening. The afternoon's big move was in Gilt linkers which rallied sharply following the announcement that the UK RPI review would not come into effect until 2030.
• In contrast w the US holiday, a reasonably active Thursday in Europe ahead: data including French and German consumer confidence, with the Swedish Riksbank decision eyed. ECB's Lane and Schnabel speak, while the October ECB meeting's accounts are published. No issuance though.

Closing Levels / 10-Yr Periphery EGB Spreads:

• Germany: The 2-Yr yield is down 0.7bps at -0.75%, 5-Yr is down 1bps at -0.755%, 10-Yr is down 0.5bps at -0.568%, and 30-Yr is down 0.7bps at -0.156%.
• UK: The 2-Yr yield is down 0.7bps at -0.025%, 5-Yr is down 0.9bps at 0.015%, 10-Yr is down 1.2bps at 0.318%, and 30-Yr is down 2bps at 0.881%.
• Italian BTP spread up 0.8bps at 118.3bps
• Spanish bond spread unchanged at 63.7bps
• Portuguese PGB spread down 0.7bps at 58.9bps
• Greek bond spread up 2.2bps at 125.5bps