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Gilts lead the way

BOND SUMMARY

Most core fixed income markets are largely unchanged on the day, with the exception of gilts which have moved higher. The move in gilts was originally a catch-up move after yesterday's public holiday but gilts have continued to move higher, possibly as a result of some front running of month-end flows.

  • There have been no market moving headlines in the European morning session with the debate focused on what the Brexit deal means for UK services and in particular the financial sector. Elsewhere the US House of Representatives has backed Trump's proposal to increase stimulus checks to $2,000.
  • TY1 futures are down -0-1+ today at 137-28 with 10y UST yields up 1.6bp at 0.941% and 2y yields down -0.1bp at 0.127%.
  • Bund futures are up 0.32 today at 177.71 with 10y Bund yields down -1.1bp at -0.578% and Schatz yields down -0.4bp at -0.720%.
  • Gilt futures are up 0.51 today at 135.33 with 10y yields down -4.7bp at 0.206% and 2y yields down -2.9bp at -0.172%.

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