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OFZ Curve Gains Post-CPI, But Remains Offered W/W


Future roll pace update


opening calls

EGB SUMMARY: It has been a relatively quiet session for EGBs with equities
instead taking the brunt of the escalation in international trade tensions. 
- German bunds have rallied on the back of Chancellor Angela Merkel receiving a
short-term reprieve from her coalition partner after a spat over migration
threatened government stability. The benchmark 10-year bund yield has edged down
to 0.363% from 0.396% at the open and in the middle of the daily range.
Meanwhile, the 2-year yield has increased to -0.630% from a session low of
-0.644, pulling the 2s10s spread down to 98bps from 101bps at the open.
- Long-end French OATS have had a relatively bumpy session, with the 30-year OAT
yield trading at 1.637%, towards the lower end of the daily range. The curve has
similarly flattened, with the 2s10s spread down to 122bps from a high of 124bps.
- Following a sharp lurch lower to 0.398%, the benchmark 2-year Italian BTP
yield has stabilised at 0.562% while the 10-year has drifted down to 2.538% from
a high of 2.601%.
- The EURIBOR futures strip has flattened with limited movement in Whites and a
2.5-3.0 tick higher in Greens and Blues.