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EGBs-GILTS: Core EGBs and Gilts are....>

BOND SUMMARY
BOND SUMMARY: EGBs-GILTS: Core EGBs and Gilts are up slightly to start
Wednesday, with a risk-off atmosphere continuing to pervade.
- 10-Yr Bund yields have hit lowest since Sep 2016 amid a bull flattening in the
German curve and key breaks lower for Eurozone and U.S. equity markets/futures.
- German 2Y10Y Spread -2.5bps at 47.4bps (hit 4-yr low of 46.879bps).
- Italy / German 10-Yr spread 2bps wider at 286.4bps.
- Earlier data included a slight miss in France flash May inflation and modest
upgrade for French Q1 GDP, neither market moving.
- This morning sees appearances by ECB's Mersch, Rehn and de Cos, and ECB's
Financial Stab Review also out. Key data includes German unemployment (0855UK).
- Current futures levels:
* Jun Bund futures (RX) up 10 ticks at 167.9 (L: 167.88 / H: 168.04)
* Jun BTP futures (IK) down 8 ticks at 129.57 (L: 129.39 / H: 129.72)
* Jun OAT futures (OA) up 15 ticks at 163.89 (L: 163.86 / H: 163.96)
* Jun Gilt futures (G) up 15 ticks at 130.37 (L: 130.35 / H: 130.5)

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