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Paring gains

BONDS
  • Bund pare gains, not seen a clear trigger for the push back, although there are suggestions that German core inflation could still be intact, so some desks are likely squaring some of the early spike higher.
  • Gilt seems to be leading Govies lower here, and still a little perplexed by the BTP bid, ahead of heavy Italian supply.
  • Gilt/Bund spread is 4bps wider and is once again testing March high at 118.29bps.

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