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/EGBs-GILTS: Core FI is weaker to......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Core FI is weaker to begin Friday amid beats in PMIs
data, following little activity in the Asia-Pac session owing to Lunar New Year
holidays.
- This morning is all about the PMIs: France beat on Manuf, missed on Svcs;
Germany beat on both. Eurozone at 0900GMT, UK at 0930GMT.
- The latter particularly pivotal ahead of next week's BoE decision, with prob
of a cut finely poised at about 50/50. Gilts down possibly as anticipation
builds of a UK PMI beat (manuf exp. 48.8 going into today).
- Plenty of downside bought in Bund options this morning as well.
- A few Davos speakers on the docket incl ECB`s Lagarde, Villeroy, Knot, BoE`s
Haskel.
** Latest levels:
* Mar Bund futures (RX) down 32 ticks at 172.71 (L: 172.6 / H: 172.92)
* Mar Gilt futures (G) down 20 ticks at 133.88 (L: 133.78 / H: 133.99)
* Italy / German 10-Yr spread 0.7bps wider at 156.9bps

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