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Gilt/Bund spread wider in early trades

BONDS
  • Gilt is dragged lower, taking its cue from its European counterparts.
  • Still a little surprising that Gilt future outperforms, given the heavy UK supply this morning.
  • Nonetheless, the Gilt/Bund spread sits 1bp wider and targets small resistance at 162.62bps, the very short term 38.2% retrace of the Dec/Jan fall.

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