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PMIs miss drive Govies and Short Term Rate futures higher

BONDS
  • EGBs and Bund are up this afternoon, with the UK PMI setting up the tone this morning, with some follow through after US PMIs also missing estimates.
  • Govies are also taking their cue from Risk tilted to the downside.
  • Peripheral spread are mixed today, Greece is 6.1bps tighter, while Portugal trades 0.6bp wider.
  • Gilt has outperformed and continues to do so this afternoon, following the big UK Services PMI miss this morning.
  • Gilt/Bund spread sits 5.8bps tighter.
  • Gilt futures are up 1.21 today at 119.20 with 10y yields down -12.1bp at 1.848% and 2y yields down -15.5bp at 1.400%.
  • Bund futures are up 0.64 today at 153.75 with 10y Bund yields down -5.9bp at 0.955% and Schatz yields down -4.5bp at 0.359%.
  • BTP futures are up 0.50 today at 128.45 with 10y yields down -6.6bp at 2.964% and 2y yields down -5.8bp at 0.933%.
  • OAT futures are up 0.53 today at 145.94 with 10y yields down -5.1bp at 1.486% and 2y yields down -5.1bp at 0.250%.

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