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Following a poor start to trading,......>

EGB SUMMARY
EGB SUMMARY: Following a poor start to trading, which reflected a reaction to
Trump's tax plan released overnight, EGBs began a slow grind higher in price.
- The Bund yield went into the close 1.7bp higher at 0.485%, having peaked
0.518% in the first hour of trading. Volumes were quite elevated, particularly
in the morning. 
- the yield curve remained extremely directional, seeing a typical-looking bear
steepening over the course of Thursday. 
- Peripheral debt was well-bid throughout the session and the Bund-BTP spread
ground the spread from 168bp (yesterday's close) to 164bp. We hear that domestic
investors are very cautious in terms of duration and prefer CCTs or are
diversifying out of BTPs, aware of the political risk.
- Italy sold a 5Y and 10Y BTP, alongside a CCT. The auction went well, rather
than stellar.
- German State and National CPI releases introduced some volatility with the
State numbers coming in strong but the National data printed in line with
expectations.

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