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Free AccessCore EGBs are tracking US Treasuries....>
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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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.