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Modest Bounce For Bunds And Gilts

BONDS

European core FI has been regaining ground since the US equity cash open, with the move appearing to be led by Treasuries, and no particular catalyst.

  • Gilts have bounced 46 ticks from the session low to 92.03, though some way to go before the 92.29 session high.
  • Bunds have bounced 38 ticks to 131.59, shy of the 131.71 session high which also represents the week's best level.
  • Looking back on the week, though, the overall picture of UK underperformance remains intact: UK 2Y yields +16bp vs flat for Schatz; UK 10Y yields up 15bp vs unch for Bund.

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