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Italian BTPs have recovered somewhat....>

EGB SUMMARY
EGB SUMMARY: Italian BTPs have recovered somewhat from their lows but remain
weak in a fairly quiet session amid a holiday in most major European markets.
- 10-Year BTPs spiked out 10bps vs Bunds to 10-month highs of 175.4bps this
morning at one point, and after recovering to 169.3bps are now taking aim at the
high again (last 173.6bps). Focus will be on President Mattarella`s meeting with
5-Star/Lega leaders starting 1730CET, and possible naming of next Italian PM.
- Periphery taking things badly as well, with Portugal 10Y PGBs out 8.7bps vs
Bunds to 137.5bps. Spain doing better but Bonos still out 4.2bps at 90.7bps.
- Bund Jun18 futures hit the highest level since 10 May up 46 ticks at one point
to 159.13, fading over the course of the morning but now rallying again, last
trading up 37 ticks at 159.04.
- Of note on the Euribor futures strip is a move higher in late Greens/early
Blues, with Mar21 and Jun21 rallying 3 ticks apiece. 
- Slovakia had a positive auction this morning, selling E182.5mln in re-opened
Jan-29 and Oct-47 government bonds, versus a planned E160mln. Next EGB auction
comes Wednesday, with Germany selling a new Jun-20 Schatz for up to E5.0bln.

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