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A calm beginning to payroll Friday......>

EGB SUMMARY: A calm beginning to payroll Friday. Overnight Trump announced a set
of tariffs but indefinitely exempted Mex/Can. Also could exempt allies if they
spend 2% of GDP on military. Market chatter is that chances of global trade war
have lessened slightly.
- There is a bear steepening for the core/semi core EGB curves and the 10Y Bund
is 1.5bp higher at 0.644%, which only gives up a small portion of the post-ECB
rally. The 2Y yield is little changed.
- Longer end of Spain is tightening slightly to the core. 
- Italy announced the bonds for next weeks auction last night. A new 7Y is
coming at is putting some pressure on the sector.
- ECB Governing Council member Vitas Vasiliauskas said that the decision to
remove easing bias was "very logical step". 
- Germany, French and Spanish industrial production data all came on the weak
side of expectations for January.
- Coeure makes introductory remarks at 0830GMT at a cyber resilience conference.
Payrolls is at 1330GMT.

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