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An apparent ceasefire - or at least.....>

EGB SUMMARY
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)

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