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Gilt keeps EGBs underpinned

BONDS
  • Gilt leads EGBs higher on the UK open.
  • The UK PPI miss likely a helping factor, and the Red/Green SONIA strip is testing session high, up 5.5 to 7.5 ticks in those maturities.
  • The Gilt/Bund spread is in turn tightening by 1.9bp.
  • The spread is testing 110.00bps, ahead of the next area of interest at 107.44bps, the November low and also the tightest print since 10th August.

Chart source: MNI/Bloomberg

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