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Risk-off has dominated markets today....>

EGB SUMMARY
EGB SUMMARY: Risk-off has dominated markets today with Bunds following USTs and
gilts higher today and peripheral spreads widening.
- There has been little in the way of European specific news today but the USTR
are expected to provide an update on potential US tariffs on EU autos later
today. This could potentially lead to a recommendation on tariffs on EU auto
parts but is expected to see a decision to make any final recommendations pushed
into next year.
- Along with the wider risk-off sentiment, BTPs are amongst the worst
performers, unwinding some of yesterday's strength following a relatively weak
auction this morning.
- Spanish yields have widened amid little new news on the formation of a
coalition, but the talks are already progressed further than following the
previous election. However, whether a coalition involving the far left is
ultimately market-positive is debatable.
- Bund futures are up 0.86 today at 170.40 with 10y Bund yields down -5.3bp at
-0.307% and Schatz yields down -0.9bp at -0.629%.

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