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Better bid into Month End

EGB SUMMARY

EGBs trade at the top side of today's ranges, helped by US Treasuries, likely supported by Month End.

  • US has large extensions, but only small, average for Europe.
  • Short term play short covering also likely ahead of the Bank holiday on Monday.
  • Peripherals are mostly flat against the German 10yr, beside Greece, which is trading 2.7bps tighter
  • Looking ahead, after market
  • Moody's on Belgium (current rating: Aa3; Outlook Stable) & Switzerland (current rating: AAA; Outlook Stable)
  • S&P on Ireland (current rating: AA-; Outlook Stable) & Turkey (current rating: B+; Outlook Stable)
  • DBRS Morningstar on Poland (current rating: A, Stable Trend)
  • Jun Bund futures (RX) up 24 ticks at 170.03 (L: 169.53 / H: 170.08)
  • Germany: The 2-Yr yield is down 0.7bps at -0.663%, 5-Yr is down 1.5bps at -0.569%, 10-Yr is down 1.5bps at -0.187%, and 30-Yr is down 0.8bps at 0.381%.
  • Jun BTP futures (IK) up 27 ticks at 147.31 (L: 146.83 / H: 147.34)
  • Jun OAT futures (OA) up 21 ticks at 160.49 (L: 160.03 / H: 160.52)

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