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EGBs-GILTS: PMIs In Focus At Beginning Of Busy Week

BOND SUMMARY

Fairly quiet trading early Monday, but no shortage of ongoing/upcoming risk events this week - UK / Eurozone lockdowns, Brexit talks, BoE/Fed meetings, US elections.

  • First thing though, are Oct Manufacturing PMIs - Spain surprised to the upside, Italy in line; France/Germany/Eurozone/UK all finals (France ticked higher from flash).
  • Little reaction though; Periphery spreads wider overall.
  • Could be a quieter session than it otherwise would have been, with some traders off desk on All Saints Day.
  • No EGB/Gilt supply today; ECB's Rehn and Mersch speak later.

Latest levels:

  • Dec Bund futures (RX) down 9 ticks at 176.06 (L: 176.02 / H: 176.32)
  • Dec Gilt futures (G) up 4 ticks at 135.72 (L: 135.61 / H: 135.79)
  • Dec BTP futures (IK) down 41 ticks at 149.18 (L: 149.13 / H: 149.63)
  • Italy / German 10-Yr spread 1.2bps wider at 139.9bps

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