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EGBs-GILTS: Flattening Continues

BOND SUMMARY

European FI is trading mixed to start the week, with Gilts outperforming and curves flattening again.

  • 2s30s and 5s30s Gilts and Bunds moving to fresh multi-month lows as the post-Fed flattening continues.
  • No key Europe data, but we get appearances by ECB's Centeno (1130BST), and Lagarde twice (1330BST and 1515BST). Slovakia sells ~E550mln of SlovGB.
  • BoE Thursday is the week's focus.

Latest levels:

  • Sep Bund futures (RX) down 4 ticks at 172.56 (L: 172.56 / H: 173.03)
  • Sep Gilt futures (G) up 12 ticks at 127.81 (L: 127.81 / H: 128.08)
  • Sep BTP futures (IK) down 9 ticks at 150.68 (L: 150.64 / H: 150.92)
  • Italy / German 10-Yr spread 0.4bps wider at 107.6bps

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