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Focus shifting to next week

EGB SUMMARY

We have been rather devoid of headlines today with Bund futures having moved lower on the European open, higher on the US open and now trade largely unchanged versus the start of the day. BTP spreads are largely unchanged while other peripheral spreads are marginally wider on the day.

  • Focus next week will remain on political events with further Brexit talks and EU budget negotiations likely but it is unclear on the timeframe for either at present. PMI data on Monday will be worth watching as a guage of how much the renewed lockdowns have hit sentiment.
  • Bund futures are up 0.15 today at 175.48 with 10y Bund yields down -1.1bp at -0.583% and Schatz yields down -1.5bp at -0.757%.
  • BTP futures are up 0.12 today at 150.99 with 10y yields down -1.0bp at 0.630% and 2y yields down -0.3bp at -0.399%.
  • OAT futures are up 0.09 today at 170.10 with 10y yields down -0.7bp at -0.346% and 2y yields down -1.0bp at -0.695%.

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