Steepener unwinds

A more steady session for EGBs this afternoon.

• But another day of above average volumes, although the bulk of it traded during the morning European session.
• Most notable moves have been steepener unwind, with German 5/30 falling close to 11.7% in the past two days, down to 73.473, from a Feb high at 83.443.
• Peripheral spread trades generally tighter, with Spain leading by 2.3bps.
• Looking ahead, Italy's Franco, Visco G20 press conference.
• Followed after markets by sovereign ratings:
• Fitch on Ireland (current rating: A+; Outlook Stable)
• Moody's on the EFSF (current rating: Aa1; Outlook Stable), the ESM (current rating: Aa1; Outlook Stable) & France (current rating: Aa2; Outlook Stable)
• DBRS Morningstar on Portugal (current rating: BBB (high), Stable Trend) & Slovakia (current rating: A (high), Stable Trend)
• Bund futures are up 0.39 today at 173.45
• BTP futures are up 0.29 today at 149.68
• OAT futures are up 0.54 today at 163.45