Free Trial

EGBs/Gilts - All the action in Gilts today

BOND SUMMARY

All of the action was in Gilts today, following the Hawkish BoE's Saunders morning comments.

  • It has been a one way move lower for Gilts, pushing 10yr yields close to yesterday's high, printing a 0.673% today.
  • UK 2yr yield broke above the July high at 0.159%, but fell just short of the June high at 0.161%
  • Rates, Short sterling saw heavy selling across the strip, but we have now faded somewhat at the time of typing.
  • EGB's have in turn been better offered on the Gilts move, but they trade in green territory nonetheless.
  • The lag in Bund versus Gilt, has push the UK/Bund spread at widest levels since the 16th June, by 4.1bps.
  • Peripherals are trading a touch wider against Germany, with Italy by 1.6bps.
  • Looking ahead, Fed's Evans Discusses the Economy.
  • Gilt futures are down -0.30 today at 128.76 with 10y yields up 3.4bp at 0.660% and 2y yields up 6.5bp at 0.141%
  • Bund futures are up 0.23 today at 174.57 with 10y Bund yields down -1.0bp at -0.330% and Schatz yields up 0.3bp at -0.679%
  • BTP futures are down -0.06 today at 152.90 with 10y yields up 0.7bp at 0.716% and 2y yields up 0.1bp at -0.408%.
  • OAT futures are up 0.21 today at 160.68 with 10y yields down -1.1bp at 0.004% and 2y yields down -0.5bp at -0.659%.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.