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Holding A Little Cheaper Into NFPs

BONDS

Little to really report on in recent EGB/gilt trade, with markets going into a bit of a holding pattern after the modest morning cheapening as participants eye the impending U.S. NFP release.

  • That leaves both Bund and gilt futures a below unchanged levels, albeit comfortably within their respective Thursday ranges.
  • German cash benchmarks sit 1.0-3.5bp cheaper as the curve bear steepens.
  • Similar moves are seen across most core/semi-core EGB curves.
  • PGBs tighten a touch vs. Bunds (~1bp), although spreads elsewhere are generally little changed to a touch wider. 10-Year BTP/Bunds is back from wides, but still above +200bp.
  • Gilts see a relatively parallel ~4bp shift higher in yields across most of the curve.
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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