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/GILTS CASH CLOSE: Bailey Doubles Down on Policy Sequencing

EGBS
  • Bund futures finished broadly flat, with the Dec-21 contract trading inside a 169.73 - 170.68 range as markets digested the German election results. Scholz's Social Democratic party fared most favourably, kicking off weeks of negotiations before a viable governing coalition can be found.
  • The UK curve steepened, with the longer-end of the curve adding near 5bps as markets eyed commentary from the Bank of England governor Bailey, who reiterated that the bank rate should be used to combat inflation risks, and bank rate rises could come ahead of the conclusion of the APP.
  • Portuguese, Greek and Spanish bond yields traded tighter vs. the German benchmark, whereas Italian, Austrian and French bonds traded slightly wider.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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