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Gilt-Bund Spread Compressing

GILTS
  • Gilts have firmed in early trading with cash yields down 2-5bp across much of the curve. The 0.50% Jan-29 Gilt will be tapped this morning and has edged higher since mid-October.
  • The move lower in gilt yields coincides with a compression in spreads, reflected in the 82bp narrowing of the 10-year gilt-bund since the mini-budget.

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