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Gilt/Bund tightest since September

BONDS
  • Gilt/Bund is unwinding the small tightening bias, and now sits 0.5bp wider.
  • Worth keeping an eye on the spread, after we traded at widest levels since May 2016 during the October peak.
  • The 10yr spread has tightened 23bps, and is tightest since 13th September.
  • The spread is 107.8, with support seen at the September low 105.718.
  • Below the latter, opens to 102.8916, the 38.2% retrace of the 2020/2021 widening.

Chart source: Bloomberg

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