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Core EGBs rallied at the open amid......>

EGB SUMMARY: Core EGBs rallied at the open amid global equity weakness but
swiftly reversed, while Italian BTPs have steadied from opening lows.
- The US equity correction Wednesday sparked a correlated bid for safe haven
securities, with Bunds benefiting. The Dec 18 future is up 43 ticks at 158.31,
but actually near day's lows, having traded in a range of 158.26-158.71.
- Conversely the BTP future is down 33 ticks at 119.98, but nearly 50 ticks off
lows. More comments from Deputy PM Salvini this morning that Italy would not
back off from its budget plans. 2-Yr yield is up 6.5bps at 1.472%, 10-Yr up
4.5bps at 3.551%.
- Up to E6.5bln in BTPs for sale today, auction bears watching given the
- Periphery EGBs holding in there, though 10-yrs are wider of Bunds: spread of
10-Yr Spanish bonds up 3bps at 109.1bps, Portugal up 3.6bps at 144.7bps, Greece
out 7.4bps at 399.1bps.
- Euribor a little stronger further down the strip, Blues up 3.5-4.0 ticks.

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