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EGBs-GILTS: Supply Supply Supply

BOND SUMMARY

Core FI is being weighed down by equities ticking higher (for the most part), and large supply coming this morning.

Periphery spreads a little tighter in the early going, while the Bund and Gilt curves have continued on from Tuesday's bear steepening.

In supply: Italy, Germany, Portugal and the UK all coming to market this morning, plus the ongoing Finland 10-Yr syndication.

Some attention is also on central bank speakers, after a relative dearth: ECB's Schnabel at 1230BST, and BOE's Haldane at 1700BST. The only noteworthy data of the day, French Aug Consumer confidence, came in line w expectations.** Latest levels:

  • Sep Bund futures (RX) down 7 ticks at 175.82 (L: 175.56 / H: 176.04)
  • Dec Gilt futures (G) down 12 ticks at 135.4 (L: 135.22 / H: 135.43)
  • Sep BTP futures (IK) up 18 ticks at 146.92 (L: 146.51 / H: 146.96)
  • Sep OAT futures (OA) down 1 ticks at 167.78 (L: 167.51 / H: 167.85)
  • Italy / German 10-Yr spread 2.2bps tighter at 143.5bps

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