November 09, 2022 17:24 GMT
EGBs-GILTS CASH CLOSE: UK Long End Leads
BONDS
UK long-end yields fell sharply Wednesday, with the belly outperforming on the German curve.
- Multiple factors spurred the European FI rally amid a generally risk-off session, with equities falling sharply alongside losses in the cryptocurrency space.
- There was also some anticipation over Thursday's US CPI reading, with MNI's preview suggesting most are eyeing downside risks to the print.
- The risk-off tone had a brief respite in the afternoon on news of a Russian setback in Ukraine, but subsequent reports saw pessimism return. Bunds and Gilts rallied throughout.
- Periphery EGBs were mixed: GGBs underperformed.
Closing Yields / 10-Yr Periphery EGB Spreads To Germany
- Germany: The 2-Yr yield is down 11.3bps at 2.211%, 5-Yr is down 10.6bps at 2.093%, 10-Yr is down 10.9bps at 2.172%, and 30-Yr is down 9.5bps at 2.09%.
- UK: The 2-Yr yield is down 2.4bps at 3.23%, 5-Yr is down 5.2bps at 3.452%, 10-Yr is down 9.5bps at 3.457%, and 30-Yr is down 17.2bps at 3.566%.
- Italian BTP spread up 0.3bps at 211.5bps / Greek up 5.5bps at 246.3bps
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