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EGBs are having a quiet session so......>

EGB SUMMARY
EGB SUMMARY: EGBs are having a quiet session so far following yesterday's large
moves and ahead of US nonfarm payrolls data later (1230GMT). German Bund yield
is currently unchanged at 0.532% with yield curve slightly steeper as short-end
come under a little selling pressure.
- While yesterday`s EMU/UK rates rally seemed fuelled at least in part by a big
intraday drop in equities, yields did not sell off after stocks bounced back.
This suggests that the market may have come to grips with weaker European growth
and inflation data.
- This morning's EMU Services PMI data, which was a little soft, and ECB Vice
President Constancio's comments on future of ECB monetary policy had little
impact on market direction.
- A bit of Euribor steepener trading this morning on Mar19-Mar20, potentially
marking profit-taking after yesterday's curve flattening. Further out, Dec21
Euribor off half a tick while whites and reds flat.
- EMU periphery a little tighter to Core/Semi-core EGBs, despite Italy's Five
Star movement again saying that fresh elections are more likely.

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