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Sharp moves in Italian BTPs and.........>

EGB SUMMARY
EGB SUMMARY: Sharp moves in Italian BTPs and weakness in German Bunds have been
the themes of Friday so far.
- The Sep8 BTP future opened up nearly 50 ticks at 124.19 on a brow-raising
report that US President Trump pledged to buy Italian debt in 2019, but market
scepticism on the story is appearing to win out, with the future now off 16
ticks at 123.54.
- Bunds are weaker in a bear steepening move, with Schatz flat, 5-Yrs
underperforming with a 0.8bps yield rise to -0.2183%, and 10-Yrs up 0.7bps at
0.366%.
- Periphery spreads are moving wider, with Italian 2-Yrs wider to Bunds by
5.0bps at 178.2bps, 10-s out 3.2bps at 278.0bps, and Spain and Portugal 10s out
0.5bps and 1.7bps, respectively.
- Minimal movement in Euribor futures, with some weakness seeing in long-dated
contracts, Greens and Blues off 0.5-1.0 ticks.
- Dearth of data today (German Q2 GDP this morning was in line - all attention
on Jackson Hole in the US, though no ECB executive board speakers scheduled.

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