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EGBs-GILTS: Weak Start

BOND SUMMARY

A very weak start to the week for Bunds and Gilts, with periphery EGB spreads slightly tighter. This retreat in core instruments comes despite flat/weaker equities.

  • ECB's Lane this morning noted that the bank will assess PEPP in June, and could raise or cut purchases (further to ECB's Kazaks saying Friday that they decide in Jun to slow bond-buying).
  • Little in the way of impactful data this morning, and no speakers or bond supply.

Latest levels:

  • Jun Bund futures (RX) down 39 ticks at 170.08 (L: 169.97 / H: 170.2)
  • Jun Gilt futures (G) down 48 ticks at 128.04 (L: 127.98 / H: 128.14)
  • Jun BTP futures (IK) down 20 ticks at 146.48 (L: 146.35 / H: 146.58)
  • Italy / German 10-Yr spread 0.5bps tighter at 117.5bps

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