Free Trial

EGBs-GILTS CASH CLOSE: Weekend Brexit Discussions Eyed

BONDS

A lack of clear direction today for Bunds as various headlines shifted sentiment in both directions, though Gilts bear steepened on hopes of a UK-EU deal.

  • Overnight the shock Trump COVID diagnosis boosted Core FI, which then reversed on news early in London trading that UK PM Johnson would meet the EU's von der Leyen on Saturday, boosting hopes of a breakthrough in talks; later, US fiscal stimulus hopes pushed global yields higher.
  • Downside surprises in Eurozone core/headline CPI for Sept had little impact.
  • BTPs closed strongly, capping a very good week for Italian and periphery spreads in general.

Closing levels:

  • Germany: The 2-Yr yield is down 0.2bps at -0.709%, 5-Yr is down 0.4bps at -0.725%, 10-Yr is unchanged at -0.536%, and 30-Yr is up 0.3bps at -0.103%.
  • UK: The 2-Yr yield is up 0.7bps at -0.037%, 5-Yr is up 0.5bps at -0.06%, 10-Yr is up 1.2bps at 0.246%, and 30-Yr is up 1.8bps at 0.818%.

10-Yr Periphery EGB Spreads:

  • Italian BTP spread down 3.7bps at 132bps
  • Spanish bond spread down 1.1bps at 75.7bps
  • Portuguese PGB spread down 2.7bps at 75.6bps
  • Greek bond spread down 3.2bps at 152.3bps

To read the full story

Close

Why MNI

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.