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EGBs-GILTS: Safe Havens In Demand

BOND SUMMARY

Gilt and Bund futures are on session highs and periphery spreads have resumed yesterday's widening, as equities retrace early gains. COVID shutdown concerns still very much in focus.

  • First resistance for front Gilts at 135.14/15; Bunds at 175.46.
  • French and Spanish supply this morning, with Brexit talks in the background. Promising AZ/Oxford vaccine study results out earlier, perhaps a bit of disappointment that it doesn't assess efficacy vs COVID.
  • ECB's Lagarde in hearing before European Parliament, not much new thus far, reiterating pledge for an easing package in December. Later today we get Villeroy, Lagarde (again) and de Cos all at 1500GMT, and Schnabel at 1600GMT. No top-tier data today though.

Latest levels:

  • Dec Bund futures (RX) up 18 ticks at 175.3 (L: 175.1 / H: 175.32)
  • Dec Gilt futures (G) up 19 ticks at 135.02 (L: 134.85 / H: 135.03)
  • Dec BTP futures (IK) down 17 ticks at 150.67 (L: 150.51 / H: 150.86)
  • Italy / German 10-Yr spread 2bps wider at 122.9bps

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