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Gilts & EGBs Back From Highs, GGB widening More than Reversed On Syndication Demand


Corrections from session lows in both equity index and crude oil futures have allowed Gilts and Bunds to pare earlier gains. Gilt futures sit flat, while cash Gilt benchmarks run 0.5-2.0bp cheaper. Bund futures are +15 or so on the day, while German cash benchmarks run flat to 2.0bp richer as the curve bull flattens. Wider core/semi-core EGB trade sees similar moves, although the French and Dutch curves have seen some cheapening in the front end. Related 10-Year spreads vs. Bunds are a marginally wider on the day.

  • Peripherals are now mixed vs. Bunds at the 10-Year point, with early Greek underperformance more than reversed on the back of strong demand and tightened guidance when it comes to the new 15-Year GGB syndication (~2bp of tightening now seen on the session). The remainder of the major peripheral 10-Year spreads vs. Bunds are little changed to ~1bp wider.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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