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German FI a touch higher overnight. Schatz....>

BUNDS
BUNDS: German FI a touch higher overnight. Schatz +1.0 tick, Bobls +2.0 ticks,
Bunds +7 ticks.
- Bund yields probed below the ECB's deposit rate on Thursday, hitting an
all-time low of -0.409% on the back of the latest dovish offering from the ECB,
this time from Olli Rehn, although yields managed to finish the day off worst
levels at -0.399%.
- Rehn's full interview with Boersen-Zeitung can be found below:
- https://www.boersen-zeitung.de/index.php?li=94
- The bullish bund backdrop was supported by EUR 5-Year/5-Year inflation linked
swaps hovering around their all-time low.
- Some profit taking crept into peripherals, most notably BTPs, with
participants happy to take money off the table on the back of the recent
narrowing. The 10-Year BTP/Bund spread closed comfortably back above 200bp.
- German factory orders headline the local docket today, with ECB's de Cos & de
Guindos both set to speak. But of course, U.S. NFPs provide the major risk event
ahead of the weekend.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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