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An early bout of risk-taking faded......>

EGB SUMMARY
EGB SUMMARY: An early bout of risk-taking faded over the course of Thursday,
with Bunds overcoming early weakness to hit best levels since April 1.
- This happened as nascent rallies in global equities and oil prices faded
following very weak U.S. economic data/cash open, no specific trigger.
- BTPs have been the star performer for most of the session, but spreads began
to give up significant tightening in the early afternoon:
- Greece has underperformed, spreads wider vs Bunds.
- Fairly heavy supply, with EUR10bln of OATs/E6.5bn of Bonos/Oblis sold.
- Lagarde earlier at IMF meetings reiterated ECB "committed to doing everything
necessary...fully prepared to increase the size of its asset purchase programmes
and adjust their composition... will explore all options and all contingencies".
- Selected levels:
* Jun Bund futures (RX) up 21 ticks at 172.89 (L: 172.04 / H: 172.89)
* Italy / German 10-Yr spread 3.7bps tighter at 231.2bps
* Greece / German 10-Yr spread 6bps wider at 260.5bps

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