• The underperformance in Gilt helps the Gilt/Bund spread wider by ~2bps and now pushing through the October high, also its widest printed level since late August 2023.
• Further widening interest will have investors looking at the 200bps handle next, but the main upside resistance is closer to 204.6bps mark, the 2023 high and the widest reached level since October 2022.
• Gilt is back towards the session low, focus is on the 96.43 Yield level.

(Chart source: MNI/Bloomberg)