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Core EGBs have retraced early gains,....>

EGB SUMMARY
EGB SUMMARY: Core EGBs have retraced early gains, while Italian BTPs are only
slightly off their highs after trading in a wide range Tuesday morning.
- German Bunds are stronger after Monday`s losses seen in reaction to Monday`s
risk-on shift post-NAFTA agreement, though have faded most morning gains, 2-Yrs
through 10-Yrs down about 0.5bps each. 10-Yr yields are up 1.2bps from lows,
last at 0.371%.
- Italian BTPs have reversed significant early losses, with the Sep8 future
having dropped as far as 122.73, rose to 123.77 around the time of the CTZ
auction this morning, last at 123.52, up 38 ticks on the day.
- Lots of issuance news this morning, with Austria announcing re-opens of 0.00%
Sep-22 and 0.75% Feb-28 RAGBs on Sep 4, Finland confirming E3bln 10-Yr benchmark
syndication order book opening today, and hearing ESM syndication may be
announced today with pricing due tomorrow (see MNI Eurozone and UK Government
Debt Auction Calendar for details).
- ECB`s Praet due to speak at 1100GMT/1200BST at the Annual Congress of the
European Economic Association.

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