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EGBs-GILTS: Edging Higher Ahead Amid Heavy Data Slate

BOND SUMMARY

Bunds and Gilts are a little stronger early Friday, reversing some of Thursday's sharp losses, and with early attention almost entirely on Eurozone national account and inflation data.

  • Prelim Q1 GDPs and CPIs in focus this morning. French Q1 GDP higher than expected; CPI in line but HICP higher. Spain GDP in line w expectations while retail sales soared in Mar (+14.9% Y/Y vs -5.0% exp.).
  • Germany, Italy and EZ GDPs up next, with Italy and EZ inflation also in focus.
  • Month-end flow also seen as a potential factor in Friday's trade.

Latest levels:

  • Jun Bund futures (RX) up 6 ticks at 169.94 (L: 169.77 / H: 170.1)
  • Jun Gilt futures (G) up 10 ticks at 127.73 (L: 127.7 / H: 127.86)
  • Jun BTP futures (IK) up 17 ticks at 147.16 (L: 146.98 / H: 147.29)
  • Italy / German 10-Yr spread 0.8bps tighter at 109.8bps

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