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Bunds head lower as equities reverse losses

EGB SUMMARY
  • After being stable for most of the day, fixed Bunds began following Treasuries lower around 2:00BST - shortly before the US cash open with curve steepening, equities going bid and some continued optimism surrounding US fiscal stimulus prospects helping risk appetite.
  • BTPs have been in focus with the syndicated exchange transaction seeing a new 30-year BTP launched for EUR8bln but with just shy of EUR10bln of buybacks of shorter-dated debt.
  • Bund futures are down -0.30 today at 175.41 with 10y Bund yields up 1.1bp at -0.578% and Schatz yields unch at -0.779%.
  • BTP futures are down -0.16 today at 148.68 with 10y yields up 0.5bp at 0.786% and 2y yields down -1.4bp at -0.329%.
  • OAT futures are down -0.34 today at 169.39 with 10y yields up 1.5bp at -0.297% and 2y yields down -0.5bp at -0.704%.

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