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Gilt, Bund and the Pound

CROSS ASSET
  • Gilts are back towards session high (again Month End in the background).
  • Bund lags somewhat, and we are once again at that key level in the Gilt/Bund spread, the 2019 peak and widest level since 2016, at 121.0123, now at 120.1205.
  • Some Bank have suggested that the widening in the spreads could have been one of the selling GBP driver, as it reflects credit risks, driving a higher premium risk for the currency

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