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Core EGBs have retreated from...........>

EGB SUMMARY: Core EGBs have retreated from overnight highs Thursday, while
Italian BTPs are underperforming.
- The Mar 19 Bund future is up 3 ticks at 164.67, having traded in a range of
164.61-165.10. The 2-Yr yield is unchanged at -0.614%, 5-Yr is down 0.4bps at
-0.375%, 10-Yr is up 0.2bps at 0.167%, and 30-Yr is up 0.2bps at 0.802%.
- Fairly muted reaction to Apple earnings disappointment which triggered a big
move in the Yen and helped trigger European equity weakness today.
- However the risk-off tone is not helping BTPs, with the Mar 19 future down 41
ticks at 127.89, with 10-Yr spread vs Bunds up 4.1bps at 256.8bps. Wednesday's
news that Banca Carige was put into administration also weighing.
- That compares with Spain, Portugal and Greek 10-Yrs which are only marginally
wider versus Bunds.
- French OATs a little wider vs Bunds, 10-Yr 0.2bps wider at 48.7bps.
- Fairly thin day data-wise. 2019 EGB issuance gets underway later with Spain
selling E4.0-5.0bln in Bono/Obli and E0.25-0.75bln in linkers.

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