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EGBs-GILTS: Gilts Reverse Course

BOND SUMMARY

Friday has begun with decent bear steepening in both the German and UK curves, with Gilts underperforming (having bull flattened Thursday, outperforming Bunds).

  • Periphery spreads a touch wider. Risk assets trading mixed generally, with Dollar stronger.
  • Earlier releases showed German Feb IP weaker than expected, though Jan was revised higher. France IP missed badly also, with weaker revision.
  • Italy retail sales the only other data of note, much stronger than expected in Feb, though overshadowed by headlines that the gov't will today ease restrictions in most of the country.
  • ECB's de Guindos on the wires, says Q1 was worse than expected. Apart from that, no speakers of note, and no EGB/Gilt supply.

Latest levels:

  • Jun Bund futures (RX) down 32 ticks at 171.57 (L: 171.54 / H: 172.07)
  • Jun Gilt futures (G) down 26 ticks at 128.22 (L: 128.19 / H: 128.5)
  • Jun BTP futures (IK) down 31 ticks at 149.02 (L: 148.94 / H: 149.27)
  • Italy / German 10-Yr spread 0.6bps wider at 100.4bps

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