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EGBs-GILTS: Core Higher Overall On PMIs; UK/EZ Next

BOND SUMMARY

It's flash PMI day - Sept Germany manuf surprised to the upside, services to the downside (and below 50); earlier, France had a big miss (also below 50) in services, with manufacturing a little above expectations.

After moving higher on the French numbers, core / semi-core FI futures have come off best levels post-German data A bit of bull flattening in the German curve, bull steepening in the UK.

Coming up, we get Eurozone PMI at 0900BST and UK at 0930BST.

In supply, Germany sells E3.5bln of May-35 Bund. Only scheduled central bank speaker is ECB's de Cos at 1100BST. Latest levels:

  • Dec Bund futures (RX) up 22 ticks at 174.59 (L: 174.32 / H: 174.64)
  • Dec Gilt futures (G) up 26 ticks at 136.62 (L: 136.24 / H: 136.62)
  • Dec BTP futures (IK) up 37 ticks at 148.11 (L: 147.64 / H: 148.17)
  • Dec OAT futures (OA) up 32 ticks at 168.82 (L: 168.56 / H: 168.86)
  • Italy / German 10-Yr spread 2.3bps tighter at 134.8bps

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