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Curves Bull Steepen

EGBS

European government bonds have broadly rallied this morning while regional equities have also pushed higher.

  • Bunds have rallied sharply with yields down 6-11bp and the 2s30s spread narrowing 6bp.
  • OATs have traced out a similar path with yields down 9-10bp on the day.
  • BTP yields are down 5-11bp.
  • MNI's policy team earlier published a sources story which is available online and by email: "Both 75, 50BP Still In Play As ECB Readies Hike"
  • In an article published for the Eurofi conference, the ECB's Martins Kazaks indicated that the speed of policy rate tightening could be slowed if there is a broad and protracted recession.
  • Please refer to email and our website for the MNI ECB Preview.
  • Supply this morning came from Germany (ILBs, EUR512mn allotted), Belgium (TCs, EUR2.446bn) and the ESM (Bills, EUR1.499bn). In addition, Italy has launched a EUR6bn 3.35 Mar-35 BTP +5bps via syndication with books closed above EUR40bn.

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