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EGBs-GILTS: Strength Ahead Of EZ Q3 GDP, BoE/ECB Speakers

BOND SUMMARY
A solid start to Friday's trade with bull flattening seen in Bunds and Gilts, as the risk-on appetite from Monday's Pfizer vaccine announcement continues to show signs of fading (equities mixed).
  • Periphery spreads are a little tighter, led by Italy.
  • Some final Oct CPI numbers out of the Eurozone this morning (a little higher than flash so far, for France, Spain); Eurozone Q3 prelim GDP at 1000GMT the highlight.
  • Plenty of speakers today: ECB's de Cos (0900GMT), Weidmann (1000GMT), Rehn (1200GMT), and BoE's Cunliffe (1300GMT), Tenreyro (1400GMT), and Bailey (1600GMT) all feature.
  • No bond auctions today, but possible Italy may sell USD bonds (5-/30-Yr) today, or Monday, with mandate announced yesterday.
Latest levels:
  • Dec Bund futures (RX) up 11 ticks at 174.85 (L: 174.85 / H: 175.05)
  • Dec Gilt futures (G) up 26 ticks at 134.8 (L: 134.76 / H: 134.96)
  • Dec BTP futures (IK) up 19 ticks at 150.54 (L: 150.34 / H: 150.75)
  • Italy / German 10-Yr spread 1.1bps tighter at 120.9bps

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