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Off the lows

EGBS
  • After reaching their lowest level of the month following German factory orders data this morning, Bund futures have reversed course and are now around 70 ticks off their intraday lows. BTP futures have followed a similar trend higher, moving around 90 ticks off their intraday lows.
  • Peripheral spreads have tightened a bit today (10-year BTP-Bund 2.2bp tighter), while the German 2s10s curve has flattened a bit and 10s30s has reversed its earlier flattening to trade flat on the day.
  • As we noted earlier, Germany will look to sell E5bln Schatz today while the EU is expected to announce the mandate for this week's syndication.

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