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EGBs-GILTS: Steeper Post-Powell


The UK and German curves have bear steepened in the wake of Thursday's post-cash close comments by US Fed Chair Powell that disappointed dovish onlookers.

  • Not a risk-on session by any means so far, with equities sharply lower and the USD higher.
  • German factory orders beat expectations though with lower revisions.
  • Not much European data to round out the week (Italy retail sales at 0900GMT), though US nonfarm payrolls up later.
  • BoE's Haskel speaks at 1400GMT.

Latest levels:

  • Jun Bund futures (RX) down 30 ticks at 171.09 (L: 170.72 / H: 171.28)
  • Jun Gilt futures (G) down 31 ticks at 128.39 (L: 128.21 / H: 128.53)
  • Jun BTP futures (IK) down 22 ticks at 148.01 (L: 147.56 / H: 148.14)
  • Italy / German 10-Yr spread 0.1bps tighter at 105bps

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