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German fixed income futures trade unchanged...>

BUNDS
BUNDS: German fixed income futures trade unchanged after a delayed start to
Asia-Pac trading owing to technical issues, which resulted in a very limited
session. Schatz +0.005, Bobls +0.010, Bunds unch. Bunds have been capped by
contract highs/0.20% yield level in recent sessions.
- Worth mentioning final Dec reading of EZ CPI confirmed a slowdown to 1.6%
Thursday, short of the ECB's target, with questions circling regarding the ECB's
current forward guidance re: MonPol. ECB's Lautenschlaeger spoke in the European
morning on Thursday, sticking to the view that the ECB will embark on a hiking
cycle at some point this year. This is in-keeping with the latest MNI sources
piece, which noted that the ECB is increasingly concerned with a deepening
economic slowdown, but more hawkish members want to see more data before
abandoning hopes of a rate hike this year (see MNI Main Wire at 11:18 GMT
01/17).
- EZ focus today falls on comments from ECB's Visco, speaking alongside Italy's
FinMin Tria, EZ current account data will also hit. Next week, all eyes will be
on the ECB, set to deliver its MonPol decision Thursday.
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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