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EGBs are currently trading mixed,.......>

EGB SUMMARY
EGB SUMMARY: EGBs are currently trading mixed, shrugging off earlier lower move
in wake of solid demand at both Spain and French long-end bond supply, while
markets also eye BoE monetary policy decision. German 10-yr Bund yield last
0.5bp higher at 0.491%.
- Bunds opened slightly weaker weighed by overnight comments from Fed's
Williams, in-line China Caixin service PMI, EGB long-end bond supply and BoE
policy announcement.
- Bunds pared losses despite better than expected Italy service PMI and upward
adjustment to French service PMI as Spain 10-yr and 25-yr bond auction saw
strong demand and decent premium. While French 10-yr and 30-yr OAT also saw
solid demand.
- Attention now turning to BoE monetary policy decision and press conference
from 1200BST, with market consensus seeing the Bank keeping rates on hold with
6-2 vote, however risk seen it being closer at 5-3 and/or hawkish minutes.
- German/Spain 10-yr spread is now little changed at 96.8bps following SPGB
auctions that saw spread reversing earlier widening move.

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