Periphery Still Wider On Day

EGBs have participated in the broader FI rally, with the softer than expected Italian CPI data and a fresh move lower in crude oil prices eyed as the supportive factors (there was a brief bounce in crude oil prices earlier today), although peripherals are still wider on the day in lieu of this morning’s hawkish BBG sources piece re: ECB QT. Bunds are 4-5bp richer across the curve in cash trade, with similar moves seen across the wider core and semi-core EGB benchmarks. The softer than expected Italian CPI data has helped peripheral spreads off session wides, with ECB-dated OIS easing post-data. Greek paper remains the underperformer at the 10-Year point, widening by ~5bp vs. the German equivalent, while the remainder of the periphery sits 1.5-3.0bp wider vs. Bunds.