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EGBs-GILTS: Mirroring US Tsys Lower

BOND SUMMARY

Core and semi-core FI continues to weaken with bear steepening in the Bund and Gilt curves Thursday, let by US Tsys. Periphery spreads largely unchanged.

  • ECB's Lane speaks at 1045GMT, with de Guindos and de Cos separately at 1500GMT.
  • In supply, Italy sells up to E6.25bn of BTP / CCTeu.
  • Italy also posts consumer/manuf confidence at 0900GMT. Earlier, French cons confidence data mildly disappointed in Feb.

Latest levels:

  • Mar Bund futures (RX) down 40 ticks at 173.64 (L: 173.61 / H: 174.25)
  • Jun Gilt futures (G) down 34 ticks at 128.09 (L: 128.08 / H: 128.33)
  • Mar BTP futures (IK) down 26 ticks at 150.29 (L: 150.29 / H: 150.6)
  • Italy / German 10-Yr spread flat at 99.1bps

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