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Free AccessAn apparent ceasefire - or at least.....>
EGB SUMMARY: An apparent ceasefire - or at least tempering of tensions - in the
US-China trade war put core EGBs on the defensive Tuesday afternoon.
- The US's delay of new tariffs on some Chinese imports until mid-December shot
European equities higher and sank Bund futures as much as 42 ticks.
- The news overshadowed Germany's 2020 draft budget publication, which showed
E234bln in bond/bill issuance expected, vs E185bln in 2019. Chancellor Merkel
emphasising that there is no need for fiscal stimulus yet.
- Italy and Greece benefiting from jump in risk appetite; Italy/Germany 10-Yr
spread 4.8bps tighter at 224.8bps; Greece in 3.1bps at 272.2bps.
- Spain and Portugal fairly flat on the day vs Germany.
- Italian Senate votes at 1800CET on timing for gov't confidence vote.
- Euribor 1-1.5 ticks lower in Jun20-Mar21 contracts, flat elsewhere.
- Latest bond futures prices:
* Sep Bund futures (RX) down 3 ticks at 177.41 (L: 177.31 / H: 177.84)
* Sep BTP futures (IK) up 84 ticks at 138.82 (L: 138 / H: 139.15)
* Sep OAT futures (OA) up 16 ticks at 168.78 (L: 168.68 / H: 169.03)
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.