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Light day with focus on the UK

BOND SUMMARY

Volumes have been very light this morning with Treasuries, Bunds and gilts all giving up gains seen earlier in the week. The focus of attention is on the UK as MPs debate the Brexit trade deal (although there is little doubt that it will pass). Later today, Health Secretary Hancock will give an update on Covid tiers, with many more areas expected to move into tier 4.

  • Data this morning have been light, with Spanish inflation in line with expectations. Later today we will receive US trade, inventories, pending home sales and the MNI Chicago PMI.
  • TY1 futures are down -0-4 today at 137-25+ with 10y UST yields up 1.2bp at 0.951% and 2y yields up 0.3bp at 0.131%.
  • Bund futures are down -0.35 today at 177.35 with 10y Bund yields up 1.7bp at -0.557% and Schatz yields up 1.3bp at -0.711%.
  • Gilt futures are down -0.33 today at 134.98 with 10y yields up 2.6bp at 0.237% and 2y yields up 1.5bp at -0.148%.

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