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EGBS: Recovery In Brent Crude Futures Contains Rally In EGBs

EGBS
  • Bund futures reached 132.51 before fading on the Brent recovery, well short of today’s post-IFO high at 132.72, with OATs and BTP futures also unable to push through intraday highs.
  • Stronger European equities continue to provide support to peripheral bonds, with 10-year spreads to Bunds around 3/4bps tighter at typing. The 10-year BTP/Bund spread trades below the 150bps handle.
  • ECB Executive Board member Schnabel is scheduled to speak at 1630BST, however we expect any monetary policy-related comments to re-iterate the ECB’s data dependent stance and non-commitment to a particular rate path.

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