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EGBs-GILTS: US Payrolls Provides The Week's Climax

BOND SUMMARY

Bunds have started Friday modestly on the front foot, with Gilts a touch lower, though all within Thursday's ranges. Periphery spreads flat/tighter.

  • With no key European data (with the possible exception of Eurozone Apr retail sales at 1000BST), mon pol speakers (ECB speakers attend a climate event in the afternoon) or supply Friday, attention is almost entirely on the US employment report at 1330BST.
  • G7 finance ministers' meeting starts in London at 0930BST, with a statement likely mid-afternoon - talks go through Saturday.
  • Eurex Jun-Sep futures rolls set to continue pre-US payrolls and ahead of first notice / last trade Tuesday, 70%+ completion already for the most part - Sep taking front.

Latest levels:

  • Sep Bund futures (RX) up 1 ticks at 171.51 (L: 171.41 / H: 171.64)
  • Sep Gilt futures (G) down 7 ticks at 126.80 (L: 126.79 / H: 126.91)
  • Jun BTP futures (IK) up 11 ticks at 147.78 (L: 147.59 / H: 147.88)
  • Italy / German 10-Yr spread 0.8bps tighter at 107.3bps

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