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EGBs-GILTS: Strong Start

BOND SUMMARY

Core FI is a stronger to start Friday despite a largely risk-on start carrying over to Europe from the US session yesterday. Periphery spreads narrowing.

  • German ind prod largely in line, France to the upside (esp when considering upward revisions).
  • Eurozone unemployment the remaining data highlight (1000GMT), in Europe at least - with US payrolls the major focal point.
  • Bond supply is done for the week.

Latest levels:

  • Mar Bund futures (RX) up 16 ticks at 177.41 (L: 177.16 / H: 177.44)
  • Mar Gilt futures (G) up 14 ticks at 134.49 (L: 134.33 / H: 134.54)
  • Mar BTP futures (IK) up 42 ticks at 152.41 (L: 152 / H: 152.47)
  • Italy / German 10-Yr spread 3bps tighter at 105bps

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