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Core FI has been gaining since..........>

EGB SUMMARY
EGB SUMMARY: Core FI has been gaining since mid-morning lows, and periphery
spreads higher, on the back of equities dipping (amid headlines suggesting that
US-China tensions are mounting). Volume on the light side though with today's
European holiday.
- A weak-ish Spanish bond sale was eclipsed by massive orders for the new 5-Yr
BTP Italia. Institutional investors took EUR8.3bln today on orders of
EUR19.5bln, bringing the total issue size to EUR22.3bln.
- Little lasting impact from mixed May Flash PMI data this morning, with
investors seemingly looking right through diffusion indices at the moment.
** Latest levels:
* Jun Bund futures (RX) up 43 ticks at 173.15 (L: 172.66 / H: 173.27)
* Germany: The 2-Yr yield is down 1.8bps at -0.69%, 5-Yr is down 2.6bps at
-0.684%, 10-Yr is down 2.8bps at -0.496%, and 30-Yr is down 1.8bps at -0.063%.
* Jun BTP futures (IK) up 17 ticks at 140.42 (L: 139.84 / H: 140.53)
* Italy / German 10-Yr spread 2.5bps wider at 212.6bps
* Jun OAT futures (OA) up 31 ticks at 168.03 (L: 167.5 / H: 168.14)

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