EGBs-GILTS CASH CLOSE: Yields Reverse Higher On Strong US Jobs Number

Bund and Gilt yields reversed sharply higher Friday after June's US Employment report was stronger than expected.

• While the initial bearish move faded somewhat by mid-afternoon, yields ended near/at session highs with Gilts underperforming.
• Moves across the curves were mixed: UK yields rose largely in parallel throughout the day; the German curve had earlier bull steepened but ended up twist steepening.
• There was little European data/newsflow driving, and volumes were low - morning trade was very subdued awaiting the US jobs figure.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany:

• Germany: The 2-Yr yield is down 3.1bps at 0.527%, 5-Yr is down 1.1bps at 0.966%, 10-Yr is up 2.7bps at 1.345%, and 30-Yr is up 5.7bps at 1.609%.
• UK: The 2-Yr yield is up 10.3bps at 1.93%, 5-Yr is up 10.1bps at 1.912%, 10-Yr is up 10.5bps at 2.233%, and 30-Yr is up 8.7bps at 2.635%.
• Italian BTP spread down 4.7bps at 194.4bps / Spanish down 1.9bps at 107.2bps