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Core EGBs Supported Amid Soft EU Equities

EGB SUMMARY
Core EGBs are on the front foot so far Monday with a general risk-off tone sweeping over the market. European equity markets are soft, with US futures also knocked on the news that Merck are to discontinue their COVID-19 vaccine programme. Elsewhere, polling showing French first round elections favour Marine le Pen over incumbent Macron has unsettled sentiment. 10-year Bund and gilt yields are around 2bps lower at writing. A slightly disappointing IFO print has not helped sentiment either.
  • Against this backdrop, 10-year BTP spreads have narrowed around 4bps after headlines this morning that Conte would not step down (contradicting reports on Friday and in the weekend press).
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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