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EGBs/gilts: Marginally steeper

BONDS
  • After a soft start to the European trading session, EGBs and gilts have retraced some of their early losses, although still remain lower on the day, and with curves marginally steeper.
  • The morning's data saw German wholesale prices turn negative year-on-year for the first time since 2020 while Eurozone industrial production missed expectations, although this was partly skewed by Irish data.
  • Looking ahead, there is little of note on the domestic calendar today (other than another MPR-related appearance from Huw Pill). The focus will start to turn to labour market data tomorrow morning (for the UK) and final CPI/GDP prints due later this week for the euro area.
  • Gilt futures are down -0.19 today at 100.74 with 10y yields up 0.9bp at 3.784% and 2y yields unch at 3.788%.
  • Bund futures are down -0.24 today at 135.96 with 10y Bund yields up 1.5bp at 2.289% and Schatz yields unch at 2.584%.
  • BTP futures are up 0.15 today at 115.23 with 10y yields down -2.5bp at 4.152% and 2y yields down -1.6bp at 3.293%.
  • OAT futures are down -0.19 today at 130.29 with 10y yields up 0.8bp at 2.862% and 2y yields up 0.7bp at 2.778%.

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