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Bunds Bear Flatten, Bounce Capped By Impending Supply

EGBS

German paper initially took its cues from U.S. Tsys, resulting in some cheapening, before a rebound from session cheaps became apparent. The bid has since run out of steam meaning that Bund futures failed to fully close their opening gap lower (just), with the presence of impending supply probably a limiting factor. That leaves the major German FI futures contracts a little lower on the day, while the German cash benchmarks are 1.0-3.5bp cheaper as the curve bear flattens.

  • The 10-Year EGB spreads that we monitor (vs. Bunds) are little changed on the day, with OATs looking through the latest comments from the French Finance Minister re: spending cuts.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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