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Firmer Following A Smaller Issuance Slate vs Last Few Days; US CPI Eyed

EGBS

Core/semi-core EGBs have firmed through the European morning as markets await today's US CPI release at 1330 GMT / 1430 CET.

  • Thursday's sovereign/IG issuance slate is substantially smaller than the past few sessions, which has which has helped relieve pressure on the space.
  • Additionally, today's Irish 10Y syndication has shown strong demand indications, following on from similar dynamics in Italy and Spain's recent syndications.
  • Bunds are currently up 36 ticks at 135.52 but remain within yesterday's range. German and French cash curves have bull flattened.
  • Peripheries are once again tighter to Bunds, with the 10Y BTP/Bund spread now below 160bps for the first time since before Christmas. Short-end BTP gains were capped in the lead-up to this morning's new 3Y BTP supply.
  • Aside from the aforementioned US CPI release, European markets look to ECB-speak from President Lagarde and the usually hawkish Vujcic (the latter will speak at an MNI event at 1400 GMT).

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