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Spill Over From U.S. Tsys Applies Some Weight To Bunds & Gilts

BONDS

Previously covered weakness in U.S. Tsys spills over to Bunds and Gilts, which drives the major cash Gilt benchmarks into a state of twist flattening, running 3bp cheaper to 2.5bp richer, while futures are +20 or so on the day. BoE policy rate terminal pricing edges up to 6.15% again. Bunds see a bear flattening move, with the major benchmarks running 2-6bp cheaper, as futures operate a little above fresh session lows, -70. Re: the latter, hawkish words from Bundesbank chief Nagel didn’t do much for the space, but wouldn’t have done the move any harm.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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