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EGBs-GILTS: Futures Up, But Off Early Highs
Bund and Gilt futures have retreated from session highs but remain modestly up to start the week.
- Sep Gilts and Bunds reached the best levels since Aug 6 (130.00 and 177.02, respectively), while BTP spreads continue to widen on a broader risk-off move (Afghanistan headlines dampening the mood).
- Gilts still some way from the 130.72 bull trigger though; Bunds likewise remain well below the Aug 5 high 177.61.
- USD on the front foot, equities a little lower.
- A quiet calendar lies ahead Monday, with no ECB/BoE speakers, no Tier 1 data, and no bond supply (though we get bill sales from the Netherlands, Germany, and France).
Latest levels:
- Sep Bund futures (RX) up 11 ticks at 176.75 (L: 176.72 / H: 177.02)
- Sep Gilt futures (G) up 14 ticks at 129.81 (L: 129.78 / H: 130)
- Sep BTP futures (IK) down 3 ticks at 155.11 (L: 155.05 / H: 155.33)
- Italy / German 10-Yr spread 1.1bps wider at 102.4bps
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.