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Move Toward Top Of Intraday Range

EGBS

Core/semi-core EGBs have drifted towards the top end of today's range in recent trade, with Bunds now near flat.

  • Bunds are -2 at 132.56, after initial weakness stalled out just above 132.00. The first resistance remains some way off at 134.21 (20-day EMA).
  • The pullback in Brent futures will be easing pressure on the space even as contracts remain within yesterday's range - our commodities team points to ongoing demand concerns as this morning's main driver.
  • Headlines from ECB President Lagarde haven't added much new to the policy debate, with Q1 wage data re-iterated as an important input to the central bank's assessment of when to begin easing.
  • 10-year periphery spreads to Bunds are a touch tighter. This morning's BTP Short Term/BTPei was digested smoothly enough, while the MEF announced details of the minimum coupon for next week's BTP Valore issue.

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