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Gilt leads Bonds lower

BONDS
  • Gilt extends to new low, and although the Auction should have limited impact, the fact that we have lower volume, delta hedging need can't be ruled out.
  • With the underperformance in Futures against EGBs, the Gilt/Bund spread is 2.5bps wider and now targets 121.85bps, the February high and the widest print since 18th January.
  • The move in Gilts push Bund and Treasuries to session low.

Chart source: MNI/Bloomberg

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