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Swap Spreads At 2-Month Wides

BUNDS

With the Bundesbank's deposit remuneration tweak still continuing to reverberate across the front end of the German curve, and bank stresses coming to the fore today, German Schatz and Bobl swap spreads are set to close at or near the widest levels since the start of June - see chart below.

  • Schatz ASW is 6bp wider on the week at 74.3bp, Bobl up 4.3bp at 72.8bp.

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