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In the green heading towards the weekend

BONDS
  • Bund and EGBs remains underpinned as the EU slowly head towards the weekend.
  • There has been a clear lack of liquidity, and despite Bund trading in another 101 ticks, volumes have been below averages.
  • Peripherals are all wider, but by small, with Greece in the lead by 1.7bp.
  • Gilt continues to outperform Germany as desk continues to digest the Dovish BoE hike from yesterday.
  • This has translated to another session when the Gilt/Bund spread continues to tighten, by another 4.4bps for today.
  • Looking ahead, Fed Kashkari, Barkin, and Bowman are still set to speak.
  • After market, rating from S&P on Spain, Fitch on Belgium, Moody's/DBRS on Greece.
  • Gilt futures are up 85 at 122.65
  • Bund futures are up 0.50 today at 161.51 with 10y Bund yields down -2.6bp at 0.356% and Schatz yields down -2.3bp at -0.370%.
  • BTP futures are up 0.36 today at 140.25 with 10y yields down -2.3bp at 1.878% and 2y yields down -3.1bp at 0.069%.
  • OAT futures are up 0.38 today at 153.94 with 10y yields down -2.2bp at 0.811% and 2y yields down -2.1bp at -0.306%.

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