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EGBs-GILTS: Regaining Some Ground

BOND SUMMARY

Bunds and Gilts have rebounded sharply early Thursday and bull flattened, regaining partial ground from Wednesday's losses (which saw front contracts touch the month's weakest levels). Periphery EGB spreads flat/tighter.

  • This despite a modestly risk-on open, with equities higher. That said, could be a bit of a breather vs the heavy issuance schedule earlier in the weak.
  • A fairly light calendar lies ahead for the day: mostly final March CPI readings, and no scheduled ECB / BoE speakers.
  • Ireland 20-Yr syndication underway, MNI expects size around E4-5bln.
  • More attention on potential market-moving US data later in the session, including Retail Sales.

Latest levels:

  • Jun Bund futures (RX) up 9 ticks at 170.96 (L: 170.6 / H: 170.97)
  • Jun Gilt futures (G) up 14 ticks at 128.17 (L: 127.93 / H: 128.18)
  • Jun BTP futures (IK) down 1 ticks at 148.03 (L: 147.78 / H: 148.06)
  • Italy / German 10-Yr spread 0.8bps tighter at 104.3bps

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