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EGBs-GILTS: Issuance In Focus

BONDS

A strong start for Bunds and Gilts Wednesday, with bull flattening in both curves despite steady/higher equities. Issuance and data in focus this morning.

  • Italy dual-tranche 7-/50-yr and Portugal 10-Yr syndications underway this morning, with German E4bn Bobl auction as well. UK sells GBP5bn of Oct-26 and Jan-46 Gilts. For good measure, the EFSF announced an RFP for next week.
  • Spain services PMIs beat expectations; Italy missed. Decent upward revisions to final figures for Eurozone, France and Germany from Flash figures. UK at 0930BST.
  • EMA to make announcement on the safety of the AstraZeneca COVID vaccine at 1500BST.
  • Bimonthly PEPP release out at 1445BST.

Latest levels:

  • Jun Bund futures (RX) up 27 ticks at 171.95 (L: 171.63 / H: 172.06)
  • Jun Gilt futures (G) up 19 ticks at 128.28 (L: 128.18 / H: 128.43)
  • Jun BTP futures (IK) up 35 ticks at 149.31 (L: 148.85 / H: 149.4)
  • Italy / German 10-Yr spread 0.6bps tighter at 100.3bps

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