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Bull flattening

EGB SUMMARY

EGBs have stayed better bid throughout the afternoon session, holding onto ground made during the morning session.

  • Bund has now caught up with Italy, pushing the BTP/Bund spread a touch wider (0.9bp)
  • Dovish comments from Villeroy yesterday and Panetta this morning have set the tone for core and semi core.
  • German 5/30s trades flat and looking at testing Friday's low situated at 92.158, now at 92.39.
  • Looking ahead, Fed Quarles will discuss Economic outlook
  • Jun Bund futures (RX) up 64 ticks at 170.33 (L: 169.69 / H: 170.34)
  • Germany: The 2-Yr yield is unchanged at -0.663%, 5-Yr is down 2.5bps at -0.578%, 10-Yr is down 4.1bps at -0.208%, and 30-Yr is down 4.6bps at 0.35%.
  • Jun BTP futures (IK) up 47 ticks at 147.22 (L: 146.85 / H: 147.33)
  • Jun OAT futures (OA) up 58 ticks at 160.67 (L: 160.09 / H: 160.68)
  • Italian BTP spread up 0.7bps at 113.3bps
  • Spanish bond spread up 0.4bps at 66.4bps
  • Portuguese PGB spread up 0.2bps at 66.2bps
  • Greek bond spread unchanged at 106.9bps

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