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Italian 2yr Future leads EGBs lower

BONDS
  • No impact in EGBs following the German IFO and ECB CPI expectations.
  • Trend in futures was already leaning lower in Europe and the US.
  • Short end BTP (BTSH4) is leading ahead of heavy supply, and has extended to its lowest level since late November.
  • Italian 2yr Yield targets the 3.5% level next.

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