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EGBs-GILTS: Off Lows Ahead Of Eurozone Inflation Data

BOND SUMMARY

It's been a rangebound start for core FI, ahead of eurozone inflation data this morning, with the bear steepening of recent sessions moderating with equities slipping. Periphery spreads a little tighter.

  • In data, French inflation a little softer than expected in March; German jobs numbers up shortly. Eurozone and Italian inflation at 1000BST. Also, UK Q4 GDP was revised up slightly though private consumption revised down.
  • In supply, Germany sells E2.5bn of 0.00% May-36 Bund.
  • Speakers include ECB's Lagarde (0900BST on BBG TV) and Villeroy (1400BST).
  • Attention after the close will turn to US Pres Biden's speech on infrastructure/stimulus (1920BST).

Latest levels:

  • Jun Bund futures (RX) up 11 ticks at 171.11 (L: 170.93 / H: 171.18)
  • Jun Gilt futures (G) up 8 ticks at 127.66 (L: 127.58 / H: 127.71)
  • Jun BTP futures (IK) up 16 ticks at 149.19 (L: 148.95 / H: 149.19)
  • Italy / German 10-Yr spread 0.5bps tighter at 96.1bps

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