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Negative Brexit = Positive FI

BOND SUMMARY
  • Gilts and Bunds have moved off of their Friday lows with the weekend newsflow dominated by a slew of negative Brexit headlines.
  • With the US on holiday for Labor Day it's expected to be a fairly quiet day in an otherwise busy week. The highlight will be the ECB meeting on Thursday.

Latest levels:

  • Dec Bund futures (RX) down 17 ticks at 173.76 (L: 173.33 / H: 173.8)
  • Dec Gilt futures (G) down 4 ticks at 135.7 (L: 135.31 / H: 135.7)
  • Dec BTP futures (IK) down 7 ticks at 144.97 (L: 144.69 / H: 145.1)
  • Dec 10-Yr US futures (TY) up 4/32 at 139-5 (L: 139-00.5 / H: 139-04.5)
  • Italy / German 10-Yr spread 0.2bps wider at 149bps

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