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Core EGBs look set to finish a strong...>

EGB SUMMARY
EGB SUMMARY: Core EGBs look set to finish a strong week with a whimper rather
than a bang, though BTPs are having a very strong Friday.
- 10-Yr BTP spreads in 8.3bps (267.4bps) vs Bunds, leading the periphery pack
(Spain and Portugal in 3-4bps, Greece down 7.4bps). Italian curve bull
steepening, 2-Yr yld down 10.5bps, 10-Yr down 8.6bps.
- Earlier, Italy's Salvini made conciliatory comments re working with Merkel and
Macron on EU rule changes. EU election results to be eyed over the weekend.
- Jun 19 Bunds are down 3 ticks at 167.19, having traded in a range of
167.1-167.33 today - yesterday, failed to take out 2019 high at 167.43.
- Euribor strip almost totally flat (+/-0.5 ticks).
- Reminder that the UK and US observe market holidays Monday, trading likely to
be very light. Beyond that, May prelim CPI for eurozone the highlight.
- Latest futures levels:
* Jun Bund futures (RX) down 2 ticks at 167.2 (L: 167.1 / H: 167.33)
* Jun BTP futures (IK) up 94 ticks at 131.02 (L: 130.12 / H: 131.05)
* Jun OAT futures (OA) up 6 ticks at 163.35 (L: 163.22 / H: 163.49)

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