January 25, 2023 08:20 GMT
Gilt keeps EGBs underpinned
- 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