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Gilts In Driving Seat, External Drivers Could Outweigh Impending ECB Speak

BUNDS

Bunds remain comfortable tracking the general gyrations in Gilts, albeit with a lower beta, after today’s UK CPI release.

  • Cash Bunds run 0.5bp cheaper to 2.5bp richer, with 20+-Year paper richer on the day as the curve twist flattens. Bund futures now hover around flat on the day.
  • ASW spreads sit either side of flat but little changed on the day, widening a touch in the wings, while Bobl & Bund ASWs are flat to a touch tighter the margin.
  • ECB speak from Schnabel & Nagel headline the regional calendar this afternoon, although Schnabel’s recent hawkish airings, coupled with the presence of Fed Chair Powell’s latest address and ongoing Gilt vol., mean that participants could look to matters outside of ECB comments for cues.
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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