EGBs/GILTs: The risk of a disorderly...>

BOND SUMMARY: EGBs/GILTs: The risk of a disorderly Brexit continues to linger as

the UK government has indicated that it will write into law provisions that will

prevent a further Brexit extension. 

- This morning's UK labour market data showed 24k job gains on a 3m/3m basis,

with consensus expecting a 14k loss.

- Gilts have rallied this morning with the belly of the curve outperforming.

Current yield levels: 2-year 0.542%, 5-year 0.576%, 10-year 0.767%, 30-year

1.279%.

- BTPs initially sold off on the back of an ANSA report that stated the Italian

parliament could hold a confidence vote on the budget on December 22nd. Futures

and cash yields have since reversed.

- Core EGBs have traded firmer this morning.

- Current German bund yields: 2-year -0.637%, 5-year -0.545%, 10-year -0.293%,

30-year 0.221%.

- The longer-end of the French OAT curve has marginally outperformed.