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/EGBs-GILTS: Core FI has reversed......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Core FI has reversed earlier gains triggered by very
weak German factory orders (-2.1% M/M, vs 0.6% survey), with equities picking up
pace and ECB`s Lagarde bemoaning monetary policy constraints.
- Mar Bund futures (RX) down 36 ticks at 173.56 (L: 173.42 / H: 173.79)
- Mar Gilt futures (G) down 36 ticks at 133.6 (L: 133.57 / H: 133.84)
- Italy / German 10-Yr spread 0.5bps tighter at 131.8bps.
- ECB's Lagarde speaking at Euro Parl; bonds weaker as not exactly expressing
"whatever it takes": "This low interest rate and low inflation environment has
significantly reduced the scope for the ECB and other central banks worldwide to
ease monetary policy in the face of an economic downturn."
- ECB Economic Bulletin out at 0900GMT; Villeroy speaks at 1400GMT.
- Large supply this morning, Spain selling up to E5.75bln, France up to E9bln.

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