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EGBs-GILTS: Turning Lower Ahead Of Supply

BOND SUMMARY

Bunds and Gilts have turned lower early Wednesday, with supply eyed.

  • Cash yield changes <0.5bps across curves: UK curve a little steeper, Germany a little flatter.
  • A mildly risk-on open with most European equities higher, though Periphery spreads mixed.
  • This morning, Germany sells E4bn of Bobl, Portugal up to E1.25bn of OT, and UK GBP0.8bn of Aug-31 linker. Latvia holds 10-Yr syndication.
  • French Jan IP came in above expectations; that's basically it for 1st tier European data until the ECB decision Thursday. US CPI the focus later in today's session.

Latest levels:

  • Jun Bund futures (RX) down 7 ticks at 171.16 (L: 171.07 / H: 171.39)
  • Jun Gilt futures (G) down 2 ticks at 128.72 (L: 128.63 / H: 128.81)
  • Jun BTP futures (IK) down 3 ticks at 148.73 (L: 148.64 / H: 148.93)
  • Italy / German 10-Yr spread 0.3bps wider at 99.6bps

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