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EGBs-GILTS: UK Unsurprisingly Outperforming

BOND SUMMARY

With Brexit and COVID news causing renewed concern over the health of the UK going into the New Year, no surprise that Gilts are the outperformers to start what is usually a fairly quiet trading week (though 2020's looks to be more exciting than usual).

  • Strong bull flattening in both the UK and German curves with periphery spreads moving wider.
  • Attention is on UK COBRA meeting on lockdowns/travel and freight restrictions, press conference this evening. And on EU meeting this morning on COVID variant response.
  • And of course on any Brexit news with talks resuming today.
  • No data, speakers, or supply of note.

Latest levels:

  • Mar Bund futures (RX) up 56 ticks at 178.22 (L: 177.78 / H: 178.44)
  • Mar Gilt futures (G) up 65 ticks at 135.61 (L: 135.54 / H: 135.8)
  • Mar BTP futures (IK) up 15 ticks at 151.89 (L: 151.73 / H: 152.09)
  • Italy / German 10-Yr spread 2.2bps wider at 115.8bps

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