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EGBs remain heavy

BUNDS
  • Bund is all the way back at the low after again rejecting the August low in Yield post US data, now testing that initially support at 132.75.
  • German Bund leads the way with OAT, followed by the BTP.
  • A break through 132.75, so far holding, opens to 132.53.
  • This is more a EGB Bond move, as the Euribor holds gains and trades close to the session high in the front end.
  • Higher Oil may have helped, but we haven't similar pressures into US Treasuries.EU Desks are more likely locking profit as we head into the later part of the session, and ahead of the longer US Labour day weekend.

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