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***Not surprisingly, Spanish bonds are firm....>

EGBS
EGBS: ***Not surprisingly, Spanish bonds are firm this morning and the
Bund-Bonos spread is 6bp tighter so far at 119bp. Early action sees good demand
in the carry/roll heavy area of 2022-2029 area of the curve. - Bunds stepped
lower 23 ticks at the open to reflect overnight price action in response to the
absence of chaos in Catalonia. However, early trading is probing the downside.
Note that there is a 5Y Obl auction later today alongside E5-7bln 7Y DSL and
this will be weighing on the core.

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