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It has been a busy morning so far in....>

EGB SUMMARY
EGB SUMMARY: It has been a busy morning so far in European FI markets. The main
driver seems to be continued follow through from comments by Italy Deputy PM
that Italy are not going to take EU deficit limits too seriously. 10y BTP-Bund
spreads are 6.6bp wider on the day, approaching the highs of early Feb.
- Bund futures are up 0.33 today at 166.92 and are trading at their highest
levels since August 2016. 10y Bund yields are down -2.6bp at -0.97% and Schatz
yields are down -2.0bp at -0.659%.
- BTP futures are down -0.44 today at 128.68, sitting just above the 100-dma.
10y yields are up 4.5bp at 2.773% and 2y yields up 8.5bp at 0.763%.
- Earlier this morning German GDP was in line with consensus expectations with
French CPI a tenth higher than the flash estimate. Italian industrial sales are
due up shortly with a second release of Eurozone GDP also due up this morning.
- In terms of issuance today Germany is coming to the market with the 30y 2048
Bund, Portugal is selling bills while there is also an 8y KfW Green Bond
syndication.

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