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EGBs/GILTS: Periphery EGBs are.........>

BOND SUMMARY
BOND SUMMARY: EGBs/GILTS: Periphery EGBs are outperforming after weekend event
risks were dodged, with Gilts and Bunds a little lower Monday.
- Italy`s reprieve at the hands of S&P Friday (affirmed at Bbb; outlook
negative) has seen spreads drop, 10-Yr 5.7bps narrower to Germany at 254.8bps.
- Likewise, Spanish 10-Yr Spreads down 3bps vs Bunds at 101.5bps, with Sunday`s
election potentially bringing stability (but coalition-building yet to come).
- Apart from confidence indicators for April, little data out of Euroland.
- No U.K. data; BOE`s Carney speaks in London at 0910BST.
- Modest bear steepening in the futures strips; Mar20-Mar24 Short-Sterling off
1.5-2 ticks; Euribor Blues/Golds off 1.5-2.0 ticks.
- Latest futures prices:
* Jun Bund futures (RX) down 29 ticks at 165.53 (L: 165.42 / H: 165.84)
* Jun BTP futures (IK) up 33 ticks at 130.64 (L: 130.51 / H: 130.95)
* Jun OAT futures (OA) down 14 ticks at 162.09 (L: 161.97 / H: 162.25)
* Jun Gilt futures (G) down 15 ticks at 127.6 (L: 127.49 / H: 127.63)

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