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Bearish Cycle Still In Play


Death Cross Adding Pressure


Risk Off Prompts Safe Haven Demand

EGBs-GILTS: No Shortage Of Supply


Bunds and Gilts have bounced back sharply from worst levels but remain lower on the session, with BTPs once again outperforming (and equities higher). Heavy supply schedule eyed.

  • In auctions, UK sells GBP4bn in Jan-26 and Oct-71 Gilt; Germany sells E6bn of Schatz. Finland (30-Yr), Cyprus (5-Yr), Belgium (50-Yr) all holding syndications today meanwhile.
  • French flash CPI came in on the high side of expectations; we get Italy and Eurozone Q4 prelim GDP data later. ECB's de Cos speaks at 1500GMT.
  • We continue to await news on the formation of a new Italian government, with PM Conte set to speak to Pres Mattarella again today - BTPs taking in stride though.

Latest levels:

  • Mar Bund futures (RX) down 24 ticks at 176.98 (L: 176.79 / H: 177.23)
  • Mar Gilt futures (G) down 29 ticks at 133.78 (L: 133.65 / H: 133.95)
  • Mar BTP futures (IK) down 8 ticks at 151.28 (L: 151.04 / H: 151.35)
  • Italy / German 10-Yr spread 1.4bps tighter at 112.3bps
MNI London Bureau | +44 203-865-3807 |