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Long Ends Off Lows

BUNDS

The pre-CPI bid in U.S. Tsys has also allowed Bund futures to tick away from lows after a limited look below yesterday’s base, although EGB trade is relatively contained.

  • That leaves the contract -35 on the day, while the German cash benchmarks run 1.5-3.5bp cheaper, bear flattening.
  • Headline flow remains light, while the uptick in equities and energy prices applied some early weight to bonds.
  • A move away from best levels for crude oil will also have helped the space off lows.
  • Core/semi-core paper deals little changed vs. Bunds.
  • The bid in equities promoted some peripheral spread compression vs. 10-Year Bunds, although only Greek paper trades close to session tights at typing as equities operate off best levels. Peripheral-Bund spreads sit flat to tighter on the day.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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