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Core EGBs are tracking US Treasuries....>

EGB SUMMARY
EGB SUMMARY: Core EGBs are tracking US Treasuries lower, while periphery bond
spreads are tightening to Bunds as they shrug off supply.
- Bunds are weaker, with the curve modestly bear steepening. Yields are up
1.2bps for the 10-Yr at 0.354%, versus an 0.2bps increase in 2-Yr, at -0.625%.
- French supply this morning (E7.5bln)is weighing on the OAT curve, with the
belly underperforming amid Mar-24 tap. 5-Yr and 6-Yr yields up 1.2bps, with 2-Yr
flat and 10-Yr up 1.1bps.
- Also amid an auction this morning, with total sale of E4.6bln, the Spanish
curve is trading mixed. The 5-Yr segment is also underperforming, with yield up
0.8bps versus a 0.2bps fall in each of 2-Yr and 10-Yr.
- Overall, periphery EGB spreads vs Bunds have narrowed, with Italy a slight
outperformer: 10-Yr BTPs in 2.5bps at 213.8bps, PGBs in 2.1bps at 140.0bps,
Bonos in 1.5bps at 92.3bps, and Greece in 1.1bps at 350.4bps.
- Fairly limited movement in the Euribor strip, which is fairly flat out to
Dec-20. Blues are off 1.0-1.5 ticks amid thin volume.

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