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Short-End Underperforming Post-ECB Amid Bear Flattening Overall

BUNDS

Worth noting a bear flattening move in the German curve following the ECB meeting. 2-Yr Schatz the clear underperformer, with curve flattening on all of 2s3s, 2s5s, 2s10s, 2s30s ... but 1s2s steepening. Schatz +2.7bps at one point.

Not entirely clear what the driver is, as even if mild rate cut expectations were dashed, Euribor implied moves are less severe.

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