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Bull flattening going into the long weekend

EGB SUMMARY

EGBs have seen better buying interest through the session.

  • The start of a new quarter and likely some short cover and squaring ahead of the long weekend, has kept the contracts elevated.
  • The German 5/30 curve sits bull flatter, but well within yesterday's range.
  • Peripherals trade mixed against the German 10yr, Portugal is 1.2bp wider, and Greece trades 1.1bps tighter
  • Looking ahead, Fed's Harker Discusses Community Banks and Fintech
  • Jun Bund futures (RX) up 42 ticks at 171.7 (L: 171.07 / H: 171.81)Germany: The 2-Yr yield is down 1.6bps at -0.707%, 5-Yr is down 2.8bps at -0.656%, 10-Yr is down 2.9bps at -0.321%, and 30-Yr is down 2.4bps at 0.234%
  • Jun BTP futures (IK) up 42 ticks at 149.73 (L: 149.24 / H: 149.8)
  • Jun OAT futures (OA) up 37 ticks at 162.32 (L: 161.76 / H: 162.41)
  • Italian BTP spread down 0.8bps at 95.2bps
  • Spanish bond spread up 0.2bps at 63.1bps
  • Portuguese PGB spread up 1.1bps at 53bps
  • Greek bond spread down 1.3bps at 114.8bps

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