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Spreads A Little Wider As Equities Struggle

EGBS

EGB spreads to Bunds a little wider on the day given the heavy start for equities and softer-than-expected services PMI data from Spain & Italy,

  • Major spreads that we monitor are 0.5-2.0bp wider at this stage.
  • OAT/Bunds continues to operate in the low 70bp area, unable to hold any breaks below the round number in recent weeks.
  • Continued French political uncertainty and warnings surrounding a further deterioration in public finances from French Finance Minister Le Maire dominate French headline flow this week, posing OAT widening risk.
  • French sovereign credit rating announcements and Budget deadlines are set to provide notable points of interest through the end of October, on top of the French political situation.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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