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EGB/GILT: Periphery-core EGB spreads...>

BOND SUMMARY
BOND SUMMARY: EGB/GILT: Periphery-core EGB spreads have narrowed in the shorter
maturities and equities have pushed higher in the wake of yesterday's ECB
meeting in which the GC opted to increase the PEPP by EUR600bn (as well as
extending its life to June 2021 and articulating a reinvestment policy for
maturity securities).
- Core markets have seen curves bear steepening.
- Gilts have traded weaker with the 2s10s spread up 3bp on the day.
- The longer end of the German bund curve is similarly slightly underperforming
the broader sell-off.
- According to reports from Spiegel, Germany is planning to raise an additional
EUR30bn in debt in 2020 to cover the government's new spending proposals.
- BTPs have rallied up the 7-year maturity while the longer end trades a touch
weaker.
- Focus now shifts to this afternoon's US NFP print and average earnings data.

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