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Move Off Intraday Highs, Peripherals Tighten

EGBS

EGBs have drifted away from intraday highs, taking cues from Gilts in the wake of speculation surrounding today's UK budget.

  • Bunds are -40 ticks at 132.89, but the first support remains some way off at 132.08 (March 4 low).
  • 10-year periphery spreads to Bunds have tightened, with European equities extending and eyeing the March 4 high of 4930.00. The 10-year BTP/Bund spread is -2.0bps at 137.0bps, just shy of yesterday's low.
  • February construction PMIs from Germany and the wider Eurozone improved on the month, but remain comfortably below 50 - these were not market movers.

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