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EGBs-GILTS CASH CLOSE: Yields Reverse Higher In The Afternoon

BONDS

European yields rose Tuesday as equities held their ground and markets continued to reprice central bank outlooks in a more hawkish direction.

  • That's of course ahead of the ECB and BoE decisions Thursday and marked a reversal in the afternoon, as morning yield drops dissipated.
  • Stronger-than-expected US ISM prices paid data and job openings contributed to a negative tone.
  • This time, the German short-end underperformed (vs UK weakness Monday).
  • BTPs rallied briefly on a BTPei syndication announcement which was seen as reducing potential for a nominal mandate in February.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

  • Germany: The 2-Yr yield is up 5.8bps at -0.47%, 5-Yr is up 1.8bps at -0.202%, 10-Yr is up 2.6bps at 0.037%, and 30-Yr is up 3.8bps at 0.315%.
  • UK: The 2-Yr yield is up 1.6bps at 1.061%, 5-Yr is up 0.3bps at 1.136%, 10-Yr is down 0.2bps at 1.3%, and 30-Yr is down 2.1bps at 1.427%.

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