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It was a topsy-turvy day for the EGB....>

EGB SUMMARY
EGB SUMMARY: It was a topsy-turvy day for the EGB market. But despite several
wiggles, the German benchmark gyrated within a 2.6bp range through the European
trading day. Historical RX volatility has collapsed in recent sessions and sits
well below the already low levels of implied.
- Italy successfully auctioned its 3, 7 and 10Y BTPs today. Demand was strong
everywhere but the 7Y part of the curve took away the bulk of post-auction
gains. More benefit was gained when news filtered through that the Italian
Parliament had passed the Rosatellum, the electoral law. The BTP market was the
best performer, tightening the 10Y spread to Germany by 3.5bp to 166.4bp.
- The pressure on Spanish bonds eased today, lacking market-moving news
regarding the Catalan referendum. The Bund-Bonos spread is currently trading
118.5bp, which is 1bp wider on the day. 
- Tomorrow's highlight is the US CPI and there is a E16bln Obl redemption due on
Friday.

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