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At about 2200GMT, news filtered.........>

EGB SUMMARY
EGB SUMMARY: At about 2200GMT, news filtered through of another North Korean
missile launch but the market has become quite immune to such threats. The 10Y
US contract naturally rose but only by 2-32 and this had been surrendered within
the space of 2 hours as the missile passed over Japan and fell into the sea.
- Bunds did open higher on the back of a risk-off feel to markets but that
positive open has faded. The Bund contract declined quickly and sits at the
close from yesterday.
- Peripheral markets are pressured. As we wrote in the Talk from the Trenches
today, political risks are coming to the fore of the market's thinking. Plus, a
possible Fed taper announcement next week would (other things equal) widen
credit spreads.
- Looking ahead sees France announce bonds for next week's auction at around
0900BST. These will be 2-7Y OATs, sources talk of OATei30s OATi25s and
favourites in the linker space.
- Belgium will also announce auction sizes for 7Y, 10Y and 20Y auctions some
time this morning. Estonia hosts a Eurogroup today. 

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