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A rally in Bunds began fizzling out.....>

EGB SUMMARY
EGB SUMMARY: A rally in Bunds began fizzling out in the late European morning.
It's been sideways trading since then with a bit of risk appetite building up,
reflected by equities reversing sharp losses.
- After hours, attention will be on Fitch's review on Italy - reminder they
downgraded Italy on 28 April to BBB- (one notch above non-investment grade),
with stable outlook.
- But it's expected to come and go without incident - the big underperformer in
peripheries is Greece, 10-Yr GGBs 12+bps wider of Germany. The Greek gov't said
today it is set to unveil a new fiscal package in Sep.
** Latest levels:
* Sep Bund futures (RX) up 17 ticks at 176.69 (L: 176.4 / H: 176.92)
* Germany: The 2-Yr yield is down 1.1bps at -0.695%, 5-Yr is down 2.1bps at
-0.679%, 10-Yr is down 1.3bps at -0.476%, and 30-Yr is down 2.8bps at -0.062%.
* Sep BTP futures (IK) down 28 ticks at 144.08 (L: 143.76 / H: 144.42)
* Italy / German 10-Yr spread 1.8bps wider at 170.5bps
* Sep OAT futures (OA) up 1 ticks at 167.92 (L: 167.86 / H: 168.06)

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