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A delayed start to Eurex trading and....>

EGB SUMMARY
EGB SUMMARY: A delayed start to Eurex trading and it being Friday has meant that
trading volumes have been a little slimmer than usual.
- The Bund contract opened relatively unchanged but there was a sudden
outperformance by 30Y Spanish and Italian paper. This was flow rather than news
related. There is no peripheral supply next week.
- That outperformance faded a little but the 10Y Bund-BTP is still 3bp tighter
on the session at 138bp. The Bund-Bonos is 1.5bp tighter.
- Eurozone HICP was revised marginally lower to 1.1%Y/Y in Feb from a previous
estimate of 1.2%Y/Y. EGBs reacted positively to this information and the 10Y
Bund yield shed 0.5bp to reach the low of the day and of almost the past month
at 0.559% before surrendering the gains and is currently at 0.568%, a net
decline of 0.8bp on the day.
- Belgium announced a range of E3.0-3.6bln for next Monday's auction of 5Y, 10Y,
15Y and 50Y debt.
- Equity market quadruple-witching that occurs today may impart additional
equity volatility around the European lunchtime today.

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