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Bond and rates markets are having a....>

BOND SUMMARY
BOND SUMMARY: Bond and rates markets are having a quiet session after
yesterday's large moves and ahead of US nonfarm payrolls data later (1230 GMT).
-While yesterday`s EMU/UK rates rally seemed fuelled at least in part by a big
intraday drop in equities, yields did not sell off after stocks bounced back.
This suggests that the market may have come to grips with weaker European growth
and inflation data. This morning's EMU Services PMI data, which was a little
soft, had little impact on direction. 10Yr Bund yield up 0.5bps at 0.5369 after
yesterday's 5bps rally.
- A bit of Euribor steepener trading this morning on Mar19-Mar20, potentially
marking profit-taking after yesterday's curve flattening. Further out, Dec21
Euribor off a tick while whites and reds flat.
- EMU periphery a little tighter to Core/Semi-core EGBs, despite Italy's Five
Star movement again saying that fresh elections are more likely.
- USTs are trading in a limited range ahead of NFPs, with Jun18 T-Note futures
up a tick at 119.23.
- It is a Japanese holiday today and JGBs are not trading.

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