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EGBs / gilts start to weaken ahead of ECB policy decision

BONDS
  • Ahead of the ECB decision in just over 10 minutes (13:15BST / 8:15ET) and the release of US GDP / core PCE (13:30BST / 8:30ET), EGBs and gilts have started to weaken again across the curve. Compared to the moves seen on the European open, the moves have been more limited but are still noteworthy.
  • For example, 10-year gilt yields trade a 4.631% at writing (high of 4.670% this morning, intraday low of 4.596%).
  • 10-year Bund yields have seen similar moves (albeit with a lower beta). Intraday high of 2.934%, intraday low of 2.877%, now 2.897%.
  • The moves in EGBs/gilts were led by USTs.

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