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EGB/Gilt: Markets have turned..........>

BOND SUMMARY
BOND SUMMARY: EGB/Gilt: Markets have turned slightly risk-off heading into this
evenings FOMC meeting. Gilts and core EGBs have rallied alongside weaker trading
in peripheries and modest losses for equities.
- Gilt cash yields are broadly 3bp lower across the curve, which trades flat on
the day.
- The bund curve has bull flattened with the 2s30s spread narrowing 3bp.
- OATs have similarly slightly outperformed at the longer end.
- BTPs have sold off with yields 3-5bp higher and the short end underperforming.
- Supply this morning came from the UK (linker, GBP900mn), Portugal (OTs,
E1.5bn), Italy (BOTs, E7.0bn), Greece (bills, E1.3bn). Finland is also also
syndicating a new 20Y issue.
- Focus is on today's FOMC meeting with some sell-side analysts expect a formal
QE announcements.

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