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Led by UK Govies

EGB SUMMARY

EGBs took their cue from their UK counterpart this afternoon.

  • A dovish BoE, and renewed conversation on Negative rates, have kept EGBs supported but lagging somewhat behind Gilts.
  • Peripheral are mixed and trading inline with the German 10yr.
  • Italy is 0.6bp tighter, while Spain sit at the other end of the spectrum, 1.1bp wider against the Bund.
  • Bund futures are up 0.31 today at 174.23 with 10y Bund yields down -1.4bp at -0.499%
  • Schatz yields down -1.2bp at -0.707%.
  • BTP futures are up 0.28 today at 146.65
  • 10y yields down -1.7bp at 0.950% and 2y yields down -1.9bp at -0.197%.
  • OAT futures are up 0.25 today at 168.38
  • 10y yields down -1.1bp at -0.235% and 2y yields down -1.1bp at -0.645%.

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