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Bunds are set to close Friday lower.....>

EGB SUMMARY
EGB SUMMARY: Bunds are set to close Friday lower across the board with the yield
curve bear steepening as the long-end underperforms, weighed by better US jobs
data.
- German 2-yr yield is +1.1bp at -0.672%, 10-yr yield +2.5bp at 0.477%, while
the 30-year part of the yield curve is +3.1bp at 1.222%.
- Core EGBs opened modestly higher supported by mild bid in US Treasuries
overnight in Asia, but slowly pared gains after upbeat German factory orders.
- Market sources reported large French/German spread trade going through futures
with 8,154 OATU7 @ 149.77 sold vs buying 6,470 RXU7 @ 163.41, which also weighed
on semi-core and periphery bonds in the morning session.
- Bonds then traded sideways ahead of key US non-farm payroll release.
- EGBs spiked lower in reaction to above consensus US Jobs report (+209k vs
+181k) and in-line average weekly earnings, and taking cue from fall in US Tsys.
Bunds attempted a recovery, however a second and third wave of selling saw
prices hit session lows, before light profit taking towards European close.
- EMU periphery are fairing slightly better with 10-yr spreads 0.5-2bp tighter

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