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EGBs-GILTS: Core Off Early Lows

BOND SUMMARY
  • Bunds and Gilts are pushing higher from early lows, with periphery EGB spreads largely unchanged.
  • German and UK curves a little flatter as equities weaken.
  • Supply eyed this morning: UK sells GBP2.5bn of Jul-35 Gilt and Germany sells E1.5bn of Aug-48 Bund.
  • UK Jan CPI a little higher than expected; other than that it's light on European data (e.g. EZ construction output at 1000GMT).
  • BoE's Ramsden speaks at 1600GMT.

Latest levels:

  • Mar Bund futures (RX) down 6 ticks at 174.74 (L: 174.38 / H: 174.77)
  • Mar Gilt futures (G) up 3 ticks at 130.87 (L: 130.67 / H: 130.93)
  • Mar BTP futures (IK) down 35 ticks at 151.91 (L: 151.63 / H: 151.96)
  • Mar OAT futures (OA) down 11 ticks at 164.85 (L: 164.46 / H: 164.88)
  • Italy / German 10-Yr spread 0.3bps wider at 92.3bps|

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