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Supplies in focus ahead of BoE

BOND SUMMARY

A range bound session for EGBs, with Heavy supplies taking center stage.

  • OATs were equating some 110k OAT, and too surprising to see the French contract trading more volume than the German Bobl
  • Early curve play saw further bear steepening reaching levels last seen since Sep.
  • But some reversal, correction is moving the German curve back flatter ahead of the US session.
  • Gilts are in a 19 ticks ranger with all eyes on the BoE
  • US treasuries have traded in tandem with EGBs, mainly range bound, with attention turning towards the UK central Bank.
  • Looking ahead, BoE rate and presser, US IJC, Fed Kaplan, Daly and RBA Lowe
  • Bund futures are up 0.01 today at 176.48
  • BTP futures are up 0.11 today at 151.88
  • OAT futures are up 0.08 today at 166.61
  • Gilt futures are unch today at 133.55
  • TY1 futures are unch today at 136-25+

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