The Riksbank has become the first......>

BOND SUMMARY: The Riksbank has become the first central bank to move away from

negative interest rates following its decision to raise the repo rate by 25bp.

The repo rate is expected to remain at 0% over the coming years. The Norges Bank

left the policy rate unchanged at 1.5%. Focus now shifts to the BoE decision at

1200GMT.

- News of US President Donald Trump's impeachment is more headline grabbing than

market-moving.

- USTs have traded weaker with cash yields up 1-2bp.

- Gilts have similarly sold off with the 10-year benchmark underperforming.

- Core EGB curves have bear steepened. 

- Germany 2s30s is now 3bp wider on the day. Current yield levels: 2-year

-0.642%, 5-year -0.509%, 10-year -0.222%, 30-year 0.297%.

- Selling pressure has been stronger at the longer end of the OAT curve.

- BTPs have been the big mover in Europe with yields 4-7bp higher.