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German FI a touch higher; Schatz +1.5, Bobls...>

EGBS
EGBS: German FI a touch higher; Schatz +1.5, Bobls +1.0, Bunds +8.
- Core paper largely ignored EZ data on Tuesday & was underpinned by trade war
worry & questionable corporate earnings from Europe, which weighed on regional
equities. Peripheral 10-Year yields were ~1-3bp wider vs Bunds Tuesday. BTPs
managed to pare the bulk of their early auction-inspired losses, while Irish
paper was pressured by Brexit worries.
- Overnight news flow centred on peripheral politics. Italian Deputy PM Di Maio
reiterated he has full confidence in PM Conte. Political polls headlined in
Iberia, with Spain's Socialists extending their lead, even as they failed to
form a gov't, while the ruling Portuguese Socialists hold a healthy lead over
the nearest contenders. Meanwhile in Greece, Parliament approved an
across-the-board reduction of a deeply unpopular property tax.
- In Austria former C'llr Kurz suggested that a coalition between his party &
the far-right Freedom Party could be an option following September's snap elex.
- EZ CPI & GDP, German retail sales & labour market data, provide the highlights
of the regional docket today. German 10-Year supply is also due.
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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