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A fairly modest start to trading on.....>

EGB SUMMARY
EGB SUMMARY: A fairly modest start to trading on Thursday and the German 10Y
yield is around 0.2bp higher than the close from Wednesday at 0.595%. French
paper is looking a little heavy ahead of OAT and linker auctions later this
morning.
- Bund-peripheral spreads are fairly stable although the BTP market is clawing
back a small amount of the underperformance from yesterday.
- There was a sudden flurry of screen selling of the TY contract in early
European trade at 120-18 to 17+ and the US market is performing poorly this
morning, following a decent yield curve bull flattening yesterday.
- There is very heavy issuance today with Spain beginning sales at 0930GMT
followed by France first selling nominals and later on linkers. The UK also
auctions a new 10Y. 
- There is a limited economic data calendar on both sides of the Atlantic today.
- Most yield curves are looking very flat at present and parts of the US and UK
curves are touching multi-year lows.

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