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Firm Start For EGBs

BOND SUMMARY

EGBs have firmed at the start of the week while UST futures have pushed higher ahead of the European open. Asian equities are broadly lower with spillovers from China as the government cracks down on the education tech sector.

  • Bund yields are 1-2bp lower in early European trade with the curve slightly flatter.
  • It is a similar story for OATs where the 2s30s spread has narrowed 1bp.
  • BTPs trade in line with core EGBs.
  • Supply this morning will come from Germany (Bubills), France (BTFs) and Belgium (OLOs).
  • Beyond the German IFO update for July, the data slate is relatively light today.
  • The schedule for central bank speakers is similarly limited with just the BoE's Gertjan Vlieghe due to speak at the LSE on demographics, debt and income.

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