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EGBs-GILTS: On The Front Foot Early

BOND SUMMARY

Bunds and Gilts have started the week one the front foot, but looks to be a fairly quiet session in terms of volumes / scheduled events given much of Europe observing a public holiday for Pentecost.

  • A bit of bull flattening in both the German and UK curves, with periphery spreads slightly tighter.
  • Gilt rolls of some interest in futures (1st notice on the 27th).
  • No data and no bond issuance in keeping w the European holiday, but we get BOE's Bailey, Cunliffe, Haldane and Saunders appearing before the Treasury Select Committee.

Latest levels:

  • Jun Bund futures (RX) up 21 ticks at 169.35 (L: 169.18 / H: 169.41)
  • Jun Gilt futures (G) up 15 ticks at 127.97 (L: 127.91 / H: 128.07)
  • Jun BTP futures (IK) up 21 ticks at 146.16 (L: 145.98 / H: 146.22)
  • Italy / German 10-Yr spread 0.4bps tighter at 115.8bps

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