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EGBs extend lower

BONDS
  • So Oil may have been helping the pullback in EGBs, but likely some profit taking has been the driver, as we head into the later part of the EU session and ahead of the long US weekend.
  • STIR contracts are still holding on to their gains.
  • Seems that the rejections at the August in 10yr Yield low in Bund and OAT is favouring some paying interest.
  • Bund has now cleared that 132.75 level, next sees the 132.53 area.
  • S Treasuries are now catching up with Europe, and a quick side note for Labour day, Cash markets will be closed, futures are open but closing early.

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