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EGBs-GILTS: Peripheries Shine As Greece Upgraded

BOND SUMMARY

We've had a rally across the board to start the week, with the German and UK curves bull steepening and periphery spreads tighter (led by Greece yields hitting record lows following Friday's ratings upgrade from Moody's).

  • Brexit in focus this week w the nominal deadline for a deal of Nov 15.
  • EFSF tapping Apr-35 via syndication, final terms out; BTP Futura retail sale begins today. Light data schedule.
  • ECB's Lagarde speaks at 0925GMT, BoE's Bailey at 1035GMT, ECB's Mersch at 1200GMT, and BOE's Haldane at 1400GMT.

Latest levels:

  • Dec Bund futures (RX) up 34 ticks at 176.37 (L: 175.99 / H: 176.38)
  • Dec Gilt futures (G) up 37 ticks at 135.86 (L: 135.54 / H: 135.87)
  • Dec BTP futures (IK) up 61 ticks at 151.22 (L: 150.91 / H: 151.3)
  • Italy / German 10-Yr spread 1bps tighter at 125.1bps

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