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EGB SUMMARY; Despite the better bid.....>

EGB SUMMARY
EGB SUMMARY: EGB SUMMARY; Despite the better bid in European Equities this
morning, there was no correlation seen going into EGBs. Instead, the German 10yr
saw better buying throughout the London morning session on safer haven. The
contract tested the gap level we noted at 178.99 (traded 178.96 high) and came
close to touch -0.70% in yield terms (equating 179.02 in Futures today). The
German 2/10s is flatter on the day, and 10/30s is pretty much flat so far.
Peripherals are underperforming against Germany and most are wider on the day.
In option space, a short term upside bet was initiated in RXU9 183 calls, which
were bought for 1 in 15k, expiry Friday. With most of the focus on Italy at
14.00BST and the 1 tick cost for the structure, this could be the motivation.
- Bund futures are up 0.72 today at 178.87 with BTP futures down -0.43 at 140.73
and OAT futures up 0.64 at 170.30. 

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