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Bunds Steeper, EGBs Generally Flat To Tighter

EGBS

Little appetite to fade the largely supply-induced weakness in EGBs (as mentioned elsewhere, Tuesday will provide a day for EUR IG issuance) thus far. Bund futures hover ~10 ticks off session lows of the day as a result, last -70 at 135.35. Still, the contract has remained within the confines of Monday’s range.

  • The German curve holds steeper, with benchmark bond yields 3.5-5.5bp higher on the day.
  • EGB spreads to Bunds are generally flat to tighter, with some outperformance seen amongst peripherals. Dutch paper is a touch wider.
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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