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Widening of the spreads

BUNDS
  • All the spreads are wider, given the massive rally in Bund.
  • Gilt/Bund spread is 5.5bps, not the widest in Core Govies, with Tnotes/Bund at 8.3bps.
  • Gilt/Bund now eye the 10th June high at 92.76bps.
  • The spread has so far found a base at ~79.00bps the May and June lows, which was also the tightest level since January 2021.

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