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After starting the European session....>

BOND SUMMARY
BOND SUMMARY: After starting the European session on the backfoot, core fixed
income has reversed most of its losses, with Bund and TY1 futures a little below
yday's settlement levels and gilt futures trading marginally higher on the day.
- The UK DMO raised its gilt remit for this fiscal year by Stg5bln with all of
the additional issuance due through two auctions (one short, one long) which are
both due to be held in December. UK labour market data was also disappointing
this morning with Y/Y earnings growth falling and a 0.1ppt pickup in the
claimant count rate.
- Elsewhere this morning the German ZEW showed a significant increase in its
expectations component but a smaller than expected increase in the current
situation component.
- The Trump testimony is due to begin today at midday ET ahead of Powell's
testimony tomorrow. There is little on today's economic data calendar to get
excited about.
- TY1 futures are down -0-2 today at 128-10+ with Bund futures down -0.09 at
169.47 and Gilt futures up 0.05 at 130.92.

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