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Yields pulled higher by inflation in the Eurozone

GILTS
  • No real UK headlines today but the higher than expected inflation prints in Spain and Germany and ensuing EGB sell-off has pulled gilts with it.
  • This has seen an upward shift across the curve and despite some 10s30s flattening, 30+ year gilts have overtaken their cycle high (previously seen on 9 May).
  • 2y yields up 5.0bp today at 1.468%, 5y yields up 5.1bp at 1.609%, 10y yields up 7.4bp at 1.990% and 30y yields up 6.6bp at 2.248%.
  • 2s10s up 2.3bp today at 52.1bp while 10s30s down -0.7bp at 25.9bp.
  • The big event tomorrow will be the release of the FQ2 fiscal calendar at 7:30BST. See the MNI Gilt Week Ahead for more.

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