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Core/Semi-Core EGBs are trading modestly.......>

EGBS
EGBS: Core/Semi-Core EGBs are trading modestly lower, weighed by US 10-yr Tsy
yield rising above 3% level which is failing to garner any flight-to-quality bid
despite rising geo-political tensions in the middle-east. Rising oil prices also
not helping.
- German 10-yr yield is 1.3bp higher at 0.574% with yield curve modestly steeper
as long-end comes under most selling pressure ahead of 30-yr Buxl supply.
- EMU periphery are fairing slightly better though and 10-yr spreads to Germany
are in the region of 1bp tighter.
- Overnight saw US Tsys slip lower as the US Dollar saw decent demand as Iran
said they would remain in the nuclear deal without the US for now, but warned it
would start uranium enrichment if negotiations with the remaining countries
failed.
- Euribor strip has opened steady to lower, curve steepening as blue contracts
fall by 1.5 to 2 ticks as concerns over inflation rising in the medium term
increase.

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