June 20, 2024 12:20 GMT
Gilt/Bund spread tighter post BoE
BONDS
- Bund failed to test the next support seen at 131.97, and remains underpinned, off its low, following the Dovish BoE after saying that the Rate decision was finely balanced for the UK.
- Despite the push higher in Gilt and Sonia futures, EGBs are still mostly under pressure, with the earlier heavy French supply capping any upside.
- The divergence between the Gilt and Bund futures has pushed the spread back tighter and by 5bps so far today.
- Main immediate support in the spread comes at 159.54bps, the June low, and the lowest print since 22nd March.
Chart source: MNI/Bloomberg.
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