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News that Iran's top military leader...>

BOND SUMMARY
BOND SUMMARY: News that Iran's top military leader has been killed in an
airstrike by the US has dominated the newsflow this morning and triggered the
safe haven bid.
- UST cash yields are down 3-6bp and the curve has bull flattened.
- Japanese markets are closed for a public holiday.
- Core EGBs had a strong open with yields pushing progressively lower through
the morning.
- Current German bund yields: 2-year -0.635%, 5-year -0.560%, 10-year -0.285%,
30-year 0.234%. The 2s30s spread has narrowed 5bp.
- Periphery EGB spreads have narrowed sharply this morning.
- Italian BTP yields are down 3-8bp with the belly of the curve outperforming.
Beyond the US-Iran developments, there are no obvious Italy-specific catalysts
underpinning the BTP rally. 
- Following the regional releases, German national CPI data will be published at
1300GMT. US ISM Manufacturing data for December is released at 1500GMT.

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