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It has been a poor end to the week......>

EGB SUMMARY
EGB SUMMARY: It has been a poor end to the week for EGBs, core and periphery
alike, with the long end of the curve particularly on the back foot as US Tsys
continue to set a bearish tone.
- Bunds look set to finish the week near their lows, Dec 18 future down 44 ticks
at 157.6, having traded in a range of 157.52-158.12 today. There has been some
bear steepening, with Schatz unchanged at -0.517% and 10-Yr yield up 3.5bps at
0.566% (highest since May).
- BTPs have slumped as risk has been taken off the table going into the weekend
amid continued uncertainty over the budget. The Dec18 future is down 98 ticks at
121.19, having traded in a range of 121.05-122.21 today.
- Yields are up across the periphery but Italy has underperformed: 10-Yr
BTP/Bund spread is up 4.7bps at 284.5bps, while Spain has narrowed 2.5bps at
100.7bps, Portugal down 1.6bps at 136.6bps, and Greece down 2.3bps at 394.1bps.
- Euribor futures are slightly lower, with Green contracts lower by 1.5-2.0
ticks, and Blues off 2.5-3.0.
- Heavy data flow next week includes ind. prod. and CPI across the eurozone.

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