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German FI is little changed ahead of...........>

EGBS
EGBS: German FI is little changed ahead of European hours; Schatz +1.5, Bobls
+1.0 and Bunds -2.
- So, the deal has been done and PM Conte is set to formally receive a fresh
mandate from President Matterella to form a PD/M5S coalition this morning. The
10-Year BTP yield has set a fresh all-time low, and even managed to trade below
1.00% on a couple of occasions on Wednesday. The 10-Year BTP/Bund spread briefly
narrowed below 170bp on Wednesday, before settling around 175bp. It is worth
remembering that the coalition will be put to the M5S party membership to vote
on next week, assuming a government can be formed (there are murmurings of
discontent from some wings of the party).
- Yesterday also saw the latest round of the Brexit saga lend a supporting hand
- Looking forwards, German state/national CPI & unemployment data, French GDP
(final) as well as EZ confidence metrics provide the highlights of the docket.
The aforementioned political goings on will also provide headlines, while
EUR6.0-7.25bn worth of combined 1.75% Jul-24 BTP, 1.35% Apr-30 BTP and Jan-25
CCTeu supply from Italy headline on the issuance front.
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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