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EGBs-GILTS: Weak Start To Month-End

BOND SUMMARY

Bunds and Gilts are headed lower with some bear steepening in the curve as month-end is eyed.

  • Not a risk-on session per se: equities lower, USD stronger, and periphery spreads tighter.
  • Prelim Q4 GDP figures out this morning: Germany, France and Spain all surprised to the upside, while German Jan jobs numbers were better than expected.
  • No scheduled central bank speakers or bond supply.

Latest levels:

  • Mar Bund futures (RX) down 36 ticks at 177.41 (L: 177.33 / H: 177.66)
  • Mar Gilt futures (G) down 25 ticks at 134.31 (L: 134.25 / H: 134.47)
  • Mar BTP futures (IK) up 9 ticks at 151.24 (L: 151.21 / H: 151.48)
  • Italy / German 10-Yr spread 2.3bps tighter at 115.2bps

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