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Gilts & Bunds Off Highs Into CPI

BONDS

EGBs and Gilts operate a little off best levels of the day. Gilt futures ran out of steam ahead of yesterday’s high, with Bund futures also remaining comfortably within yesterday’s boundaries. Cash Gilts run 3-6bp richer, bull steepening with the bid in the front end of the curve moderating from session extremes alongside a retrace from dovish extremes in UK STIRs. The German cash benchmarks are 0.5-3.0bp richer, with 5s outperforming.

  • 10-Year supply on both curves was smoothly digested earlier today.
  • An uptick in equities will be helping cap bids at present.
  • The proximity to U.S. CPI data will will also be limiting any risk-taking ability/desire.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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