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EGBs-GILTS: Eyes On Supplies And CPIs

BOND SUMMARY

Movements in Bunds and Gilts have been almost imperceptible, with futures steady and trading within very narrow ranges early Tuesday. US CPI set to be the day's main event, but large European supply eyed as well.

  • Today sees >E30bln in euro-denominated supply (including E15.25bln dual-tranche EU syndication and E9bln of 3/7/15-year BTPs), and GBP6bln (MNI expectation) in 2039 Gilt syndication.
  • Periphery spreads unchanged.
  • Morning's data (mostly final Jun CPIs) and speakers (BoE's Bailey currently discussing FSR) look fairly uneventful by comparison.

Latest levels:

  • Sep Bund futures (RX) steady at 174.05 (L: 173.99 / H: 174.17)
  • Sep Gilt futures (G) down 3 ticks at 128.91 (L: 128.87 / H: 129.03)
  • Sep BTP futures (IK) steady at 152.6 (L: 152.52 / H: 152.71)
  • Italy / German 10-Yr spread 0.1bps wider at 103.4bps

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