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Bunds are inching back toward...........>

EGB SUMMARY
EGB SUMMARY: Bunds are inching back toward all-time best levels on another slow
day of trading Tuesday, with focus still firmly on Thursday's ECB decision.
- Spain's Sanchez failed to form a new government today, but will try again on
Thursday. 10-Yr spreads /Bunds back to flat (74bps) after early +5bps move.
- Elsewhere, Italy and Greece 10-Yr spreads 4-5bps tighter.
- Bund curve a bit flatter, with 2-Yr yield down 0.9bps at -0.782%, 5-Yr down
0.9bps at -0.682%, 10-Yr down 1.2bps at -0.358%, 30-Yr down 0.6bps at 0.24%.
- Saw some gains following EU's Malmstrom statement reiterating US tariff risks
and retaliation around 1530CET.
- Thin on data (slight pickup in Jul flash cons. confidence).
- Keep in mind very thin volumes today: Sep Bunds trading just 350k by 1700CET.
- Euribor strip very flat. Latest futures prices:
* Sep Bund futures (RX) up 18 ticks at 173.96 (L: 173.56 / H: 173.97)
* Sep BTP futures (IK) up 72 ticks at 139.14 (L: 138.51 / H: 139.25)
* Sep OAT futures (OA) up 18 ticks at 166.11 (L: 165.72 / H: 166.14)

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