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EGBs are coming under some light selling.......>

EGBS
EGBS: EGBs are coming under some light selling pressure at start of Thursday's
trade, taking cue from fall in US Tsys overnight and weighed by Spain and French
bond supply. German 10-yr yield is 0.7bp higher at 0.349% with 2s/10s spread
1.1bp steeper.
- EMU periphery are fairing slightly better than core EGBs though with 10-yr
Bund/BTP spread 2.3bp tighter as summer carry trade resumes. Markets are
expected to remain quiet in thin volumes with little Eurozone data or official
speakers scheduled for today. The G20 Finance ministers meeting gets under way
in Buenos Aires later today.
- Bond supply from France and Spain is the main event today with the French
Tresor tapping two OATS - 0.00% Feb-21 and 0.00% Mar-24 and three linkers: the
0.10% Mar-25 OATi, 0.70% Jul-30 OATei, and 0.10% Jul-47 OATei. While Spain
re-opens 0.35% Jul-23 Bono, 5.90% Jul-26 Obli, 1.40% Jul-28 Obli, and 2.35%
Jul-33 Obli
- Euribor strip is steady to 1 tick lower with blues underperforming reds

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