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German FI followed core paper higher...........>

EGBS
EGBS: German FI followed core paper higher overnight, with a focus on the higher
USD/CNY fix from the PBoC and a shock 50bp cut from the RBNZ the notable
headline drivers.
- Schatz +1.0, Bobls +5.0, Bunds +29.
- This comes after Bunds settled higher Tuesday, as trade war worry underscored
the space, allowing the early sell off to be reversed and more.
- 10-Year BTPs tightened vs. Bunds yesterday, aided by Salvini winning a key
vote in Parliament on Monday night, although Salvini did caution that Italy's
2020 budget deficit will not be sub-2.0% of GDP on Tuesday, limiting BTPs during
the latter part of the session
- EUR 5-Year/5-Year inflation linked swaps settled around the 1.22% level come
yesterday's close, sticking to a tight range.
- Elsewhere, the EUR 10-Year swap rate consolidated in negative territory.
- German industrial production headlines the regional docket today, while
Germany will come to market with 2024 paper.
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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