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EGBs are trading with a slight risk-on.........>

EGBS
EGBS: EGBs are trading with a slight risk-on sentiment as markets play catch up
after Eurozone was closed for Labour Day Holiday yesterday. German 10-yr Bund
yield is 1.5bp higher at 0.574% with curve modestly steeper as front-end remains
anchored. 
- EMU periphery have started on a strong footing though with 10-yr Bund/BTP
spread 4bp tighter at 118.4bps despite League and centre right coalition leader
Matteo Salvini said that the alternative to a forming a government with the Five
Star Movement would be new elections.
- Slightly better than expected Spain manufacturing PMI is also seen helping EMU
periphery.
- Final Eurozone manufacturing PMI is released at 0900BST, but markets do not
expect any change from flash number of 56.0. Advanced Eurozone Q1 GDP will also
be eyed at 1000BST with consensus looking for a 0.4% q/q print.

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