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Elevated volumes in the 2yr

EGB FLOWS

A very subdued session for Bund, as the contract trade in a 22 tick range (176.02-176.24),

  • Most investors seems to be on the sideline, with plenty of risk ahead, and the potential for a no deal Brexit changing the whole outlook..
  • EU/UK trade talks are expected to resume before the end of the week.
  • German curve continues to trade flat and volumes are generally below averages.
  • But worth noting, the elevated volume in the Schatz, with the contract trading more than Bunds.
  • Some suggest, possibly related to basis trade,
  • Schatz trades in 1.5 tick range (112.445-112.46)

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