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German fixed income futures also ticked.......>

BUNDS
BUNDS: German fixed income futures also ticked higher overnight, driven by the
global impulses. Schatz unch., Bobls +4.0 ticks, Bunds +17 ticks.
- A leg higher in Tsys dragged the space higher on Tuesday, with talk of foreign
capital flows into Tsys helping to support.
- Tuesday also saw ECB's Coeure note that "the negative deposit rate is not the
most important reason why interest rates are so low. If we change something,
there has to be a monetary policy reason for doing so. At the current juncture,
I do not see the monetary policy argument for tiering. However, we must keep a
close eye on developments. Those who would profit from tiering are, above all,
banks with high excess liquidity, of which many are located in France and
Germany where bank lending is already running high. Thus there is no evidence so
far that the negative deposit rate is bad for lending. On the contrary."
- Regional focus moves to the latest IFO survey, due today. Elsewhere, Germany
will auction 2029 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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