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German FI futures are a touch lower; Schatz...>

BUNDS
BUNDS: German FI futures are a touch lower; Schatz -0.5 tick, Bobls -4.0 ticks,
Bunds -18 ticks. Flows surrounding the U.S.-Mexico trade/border situation
outweighed a couple of cautious ECB sources pieces. RTRS sources noted that "ECB
policymakers are open to cutting the policy rate again if economic growth
weakens in the rest of the year & a strong euro hurts a bloc already bearing the
brunt of a global trade war." Early Monday saw the latest BBG sources piece hit,
which noted that "staff at the ECB worried that inflation expectations are
becoming "de-anchored."
- Italian fiscal matters continue to generate interest, with the war of words
surrounding the possibility of mini-BoT's continuing to flare between members of
the coalition parties & the neutral econ minister. PM Conte has once again
reiterated the ultimatum he recently delivered re: threatening to quit.
- DBRS affirmed Germany's Aaa credit rating on Friday, while ECB Weidmann &
Visco stuck to their respective scripts re: the direction of MonPol.
- Monday provides a limited docket for the Euro area.
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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