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Core/Semi-core open sharply higher.............>

EGBS
EGBS: Core/Semi-core open sharply higher underpinned by flight-to-quality bid
following comments from Russia's Medvedev attacking the US in response to latest
US sanctions and the meltdown in the Turkish Lira.
- Markets pares some of the move though as LIRA rallies from lows. German 10-yr
yield is 3.4bp lower at 0.341% vs low of 0.335% with the yield curve flatter.
- BTPs are also under heaving selling pressure, weighed by latest Di Maio
comments on its budget and news that the country will not raise its VAT. 10-yr
Bund/BTP spread is 5.4bp wider at 257.7bps.
- Risk-off bid also underpinned by a FT article pointing to worry at the ECB
over some of the EZ's largest banks' exposures to Turkey.
- Elsewhere French industrial production came in slightly ahead of consensus at
0.6% m/m in June, but that is it for Eurozone data today, so attention likely to
remain on fluctuations in the currency markets and any political comments on
sanctions or trade wars.
- Euribor strip is steeper as white contracts come under heavy selling but blues
rise by 2.5 to 3 ticks 

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