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Futures Softer Overnight


Tweaks To Emergency Declaration Mulled


(U1) Tilted Higher

EGB SUMMARY: Core/semi-core EGBs are weaker ahead of the US Fed decision.
- German curve bear steepening slightly (2s10s up 0.6bps).
- Periphery spreads tighter, led by Greece (10s 6bps tighter to Bunds).
- BBG and Rtrs citing EU official saying that leaders hope for an agreement on
the top EU posts by July 2. Also, Rtrs reported that the Commission unlikely to
discipline Italy next week - more likely to wait until first week of July.
- Draghi's comments concluding the ECB Sintra conference amounted to a sparse
statement consisting of pleasantries, in sharp contrast to Tuesday's bombshell.
- With that out of the way, the US Fed decision this evening is clearly
front-and-centre in mind. Though Thursday sees Draghi, de Guindos on the
calendar, as well as the Norges Bank and BoE decisions (see our previews!).
- Bear steepening in Euribor strip, Blues/Golds down 5.5-6 ticks.
- Latest futures prices:
* Sep Bund futures (RX) down 70 ticks at 172.16 (L: 172.09 / H: 172.72)
* Sep BTP futures (IK) down 22 ticks at 133.99 (L: 133.6 / H: 134.65)
* Sep OAT futures (OA) down 73 ticks at 164.07 (L: 164.02 / H: 164.64)