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Bund yields were higher on Tuesday as...>

EGB SUMMARY
EGB SUMMARY: Bund yields were higher on Tuesday as the weight of SSA supply
probably knocked the market lower. Some claimed that the Bank of Japan's
trimming of its asset purchases helped push Treasury yields up in the afternoon
to above 2.50% but the drops were coincident with the announcements of first the
Portuguese 10Y and then the 20Y BTP, Sep-38. the Treasury market failed to react
when the actual news of the BoJ hit.
- SSA supply was an ongoing theme through the day. The Dutch sold 6Y paper, the
Austrians 10Y and 30Y and then the Bundei 30Y. The UK also sold 10Y debt and KfW
and Dexia were in also in the high grade space.
- The afternoon sell-off in EGBs (and all global bonds) was strongest in the 20
year section of Italy (for supply reasons) but the 30Y Bund was not far behind
with a 3.1bp yield rise heading into the close. The 10Y Bund yield was last at
0.451%, a rise of 2bp. Peripheral spreads to Germany were mixed.
- Wednesday is looking very busy with a new 10Y Bund and the two aforementioned
syndicated deals.

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