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EGBs-GILTS: UK Underperforms, Internal Market Bill In Focus (Again)

BOND SUMMARY

Gilts are underperforming to start the week, as reports emerge that the UK gov't is considering rewriting contentious clauses of the Internal Market Bill.

  • Moody's downgrade of the UK Friday (predictably?) shrugged off. Sterling and equities higher, Gilts bear steepening. Bunds largely unch; periphery spreads a little wider.
  • Slovakia and Belgium hold auctions today, with ESM.selling E2bln of Dec-24 bond via syndication, books open. Only 2nd tier data to start the week.
  • Plenty of central bank speakers. ECB's de Guindos speaking now; up later are de Cos (1215BST), Mersch (1230BST), Lagarde (1330BST and 1345BST), Lane (1340BST), then from the BOE, Broadbent (1430BST) and Cunliffe (1505BST and 1600BST).

Latest levels:

  • Dec Bund futures (RX) down 5 ticks at 176.02 (L: 175.88 / H: 176.12)
  • Dec Gilt futures (G) down 14 ticks at 136.47 (L: 136.33 / H: 136.49)
  • Dec BTP futures (IK) down 27 ticks at 149.95 (L: 149.77 / H: 150.32)
  • Italy / German 10-Yr spread 1.7bps wider at 129bps

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