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Core European markets opened in a.......>

EGB SUMMARY
EGB SUMMARY: Core European markets opened in a catch-up play to a poor Treasury
market performance in Asian trading. In turn, Treasury weakness was mostly
linked to the Trump tax plan.
- The 2Y Germany yield is 1.4bp higher at -0.687% and the 10Y is up 3.6bp at
0.504%, the first time the yield has been above 0.5% since Aug 1.
- Peripheral markets rallied quite hard after the Italian auction cut off. The
Bund-BTP spread slipped 2bp since the auction to 165.6bp, with similar movements
in other peripheral markets.
- In terms of data, EMU economic confidence hit 113.0. It briefly hit 113.3 in
2007, otherwise it is the highest in 17 years. 
- Spanish CPI numbers printed light of expectations at 0.6%M/M. German State
data point to an above consensus print when National data are released at
1300BST.
- Irish debt has been stable today, even though this market would be the most
vulnerable to a 20% corporate tax rate in the US.
- Remaining market moving events are likely Fed speakers and a 7Y UST auction.

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