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Core EGBs remain elevated following.....>

EGB SUMMARY
EGB SUMMARY: Core EGBs remain elevated following weaker-than-expected PMI data
Thursday morning, ahead of the holiday weekend.
- Bunds and semi-core EGB futures pushed to day's high after German and Eurozone
manufacturing PMI data (0830 and 0900 UK time) did little to suggest an economic
rebound is imminent.
- Spike in futures volumes particularly notable, hearing suggestions of short
covering on Bunds, esp going into the long weekend. Worth noting that shorts
were being set on Bunds over past week, according to MNI Pi.
- Periphery spreads largely unchanged despite risk-off; BTPs, SPGBs, and PGBs
10-Yr spreads / bunds all within 1bps of opening. Greek GGBs 2.1bps wider.
- France had some decent linker/nominal OAT auctions this morning, with spreads
falling all morning (10-Yr OAT/Bund down 1.1bps at 33.3bps).
- Latest futures prices:
* Jun Bund futures (RX) up 51 ticks at 164.81 (L: 164.33 / H: 165.11)
* Jun BTP futures (IK) up 29 ticks at 130.12 (L: 129.8 / H: 130.17)
* Jun OAT futures (OA) up 68 ticks at 161.77 (L: 161.16 / H: 161.94)

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