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EU migration agreement and a...........>

BOND SUMMARY
BOND SUMMARY: EU migration agreement and a surprise 0.1% upward revision to UK
Q1 GDP have weighed on sovereign bonds Friday with the exception of EMU
periphery bonds which have rallied on the news, especially Italy.
- US Treasuries are trading weaker on the overnight news/data, but are lagging
the downward move in both UK Gilts and German Bunds, as markets remain
underpinned by global trade concerns. US 10-yr Tsy yield is +1.8bp at 2.855%
while the the belly of the yield curve underperforming the wings slightly.
- Core/Semi core EGBs are trading lower with the 5-yr sector coming under the
most selling pressure as EU political risks subside following EU migration
agreement and views that Eurozone growth could be better than expected. German
10-yr yield is +1.7bp at 0.336% while 5-yr is +3.1bp
- Italy BTPs have benefited the most from the deal struck early this morning and
is helping other EMU periphery to outperform core EGBs. 10-yr Bund/BTP spread is
9.6bp tighter at 236.4bps.
- Gilts are the worst performers following surprise 0.1% upward revision to Q1
GDP. 10-yr Gilt is +3.7bp at 1.292% with curve bear flattening

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