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Spanish debt started to weaken soon.....>

EGB SUMMARY
EGB SUMMARY: Spanish debt started to weaken soon after the opening of EGB
markets and the 10Y spread to Germany quickly widened by around 4bp, a
continuation of Wednesday's movement.
- The move was quickly brought under control and then the EGB market settled
down into a fairly dull mid-morning.
- Ireland sold 9Y and 30Y debt and mirroring yesterday's experience in 5Y
Germany and 10Y Portugal, bidding was fairly tepid.
- New European Commission forecasts upgraded growth numbers and soon after the
ECB's Coeure made some positive comments on European growth. The combination of
these two events appeared to push the Bund contract and other bond markets
lower. This movement quickly created its own momentum and subsequently a 15k
Bund block trade showed up that helped to explain the movement.
- Peripheral spreads are 1-2bp wider versus Germany in the 10Y sector. The
German curve is steepening quite aggressively from the long end: the 2Y is
+0.7bp at -0.754%, the 10Y is +3.1bp at 0.356% and the 30Y is +3.7bp at 1.24%.

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