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EGBs-GILTS: Fluctuating On Mixed PMIs, Gilt Remit Surprise

BOND SUMMARY

A busy start to Thursday's session, with PMI data the main focus.

  • Stronger-than-expected French April flash PMI sent core EGBs off early session highs, then Bunds rebounded from the lows on a subsequent miss in the German reading.
  • A larger than expected reduction in the gilt remit for FY21/22 saw Gilts open sharply higher, but gains faded quickly - very strong Mar UK retail sales data of note.
  • EZ PMI out at 0900BST, UK at 0930BST.
  • ECB Survey of Prof Forecasters at 0900BST; ECB's Lagarde speaks on a climate panel at 1535BST.

Latest levels:

  • Jun Bund futures (RX) steady at at 170.94 (L: 170.67 / H: 171.08)
  • Jun Gilt futures (G) down 4 ticks at 128.76 (L: 128.61 / H: 129.09)
  • Jun BTP futures (IK) up 4 ticks at 148.39 (L: 148.2 / H: 148.45)
  • Italy / German 10-Yr spread 0.8bps wider at 101.5bps

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