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European government bond markets open with a...>

EGBS
EGBS: European government bond markets open with a risk-off tone once more, with
Italy dragging the rest of the periphery sharply lower on what appears to be
little new news. 10-yr Bund/BTP spread hit 201.7bps just shy of 2017 high of
203bps.
- German 10-yr Bund yield is 1.8bp lower at 0.454% with the yield curve
marginally flatter as the long-end outperforms the short end.
- Main news overnight saw N.Korea say they were still willing to meet the US
despite US President Trump cancelling the meeting yesterday.
- In European, data is a little thin on the ground, however latest German IFO
sentiment is released at 0800GMT. Markets expectations is for the expectations
component to slip to 98.5 from 98.7. While attention is likely to remain on
Italy.
- Euribor strip has reversed earlier weakness and is now trading steady to
higher with curve modestly flatter as green and blue contracts are 1.5 to 2
ticks higher.

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