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Peripheral spreads narrow in early trading

EGBS
  • Bund futures have bounced around a bit overnight but at the time of writing are flat close to Friday's close of 133.73, after coming off an overnight high of 134.14.
  • BTP futures have are now around 20 ticks higher than Friday's close as peripheral spreads narrow following Sunday's statements from US regulators surrounding SVB and Signature Bank as well as this morning's announcement from the BOE that HSBC would be taking over SVB's UK operations.
  • There is a Eurogroup meeting scheduled for this afternoon but the main focus for EGBs (outside of the banking headlines) will be tomorrow's US CPI print (and impact on the Fed) ahead of Thursday's ECB meeting.

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