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Slow start so far in European government.......>

EGBS
EGBS: Slow start so far in European government bond trading as UK enjoys a very
hot early May-day Holiday, but overall yields are modestly lower and curves
edging slightly flatter as long-end sees better buying while short-end remains
anchored.
- German 10-yr Bund yield is 1.2bp lower at 0.534%, with 2s/10s and 2s/30s
spreads circa 0.7bp tighter.
- EGBs saw a little buying at start of European session following a surprise
contraction in German factory orders which adds to slightly disappointing
downward revision to service PMI on Friday. Factory orders fell 0.9% m/m in
March with consensus looking for a 0.5% m/m gain.
- EMU periphery are performing slightly better than bunds with Bund/BTP spread
0.5bp tighter at 124.7bps as newswires report 5-Star Movement leader, Luigi Di
Maio, on Sunday make a last-ditch offer to the far-right League in a bid to
break a political deadlock.
- Little further data from the Eurozone today and US data is limited to consumer
credit. There is no bond supply today either.

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