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Spreads To Bunds Tighten A Little Alongside U.S. Data-Driven Equity Rally

EGBS

EGB spreads to Bunds tighten a little in the wake of the U.S. data and related move higher in equities, as the risk-positive nature of the releases marginally outweighs the impact of hawkish repricing in core global STIR markets.

  • Still, spread moves remain contained with some light outperformance for BTPs and OATs amongst the major spreads we monitor.
  • Those differentials vs. Bunds move further below 140bp and 75bp, respectively.
  • EUR 3M/10Y vol. edges lower, but doesn’t breach yesterday’s base, operating around the middle of the range in play since the July 23 low was registered.
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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