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- The 10Y Bund yield is trading lower...>

EGB SUMMARY
EGB SUMMARY: - The 10Y Bund yield is trading lower 0.5bp at 0.368%, continuing
the rally that began following reports that the ECB was honing in upon a nine
month extension to QE.
- Final EMU headline inflation data came in stable at 1.5% whereas the core
reading weakened a further 6bp relative to August at 1.12%. In other data, from
the Eurozone the German ZEW Economic sentiment (Oct) came in at 17.6 versus a
figure of 17.0 in September. However, this was lower than the MNI forecast level
of 23.0. 
- In the peripheral markets, the spread on the Bund-BTP is tighter today and
currently trading at 165.2bp, bouncing from a low of 163.8bp. Sources reported
massive buying in the MTS platform in the 7Y area this morning.
- The Bund-Bonos spread is also trading 0.6bp tighter today, currently trading
at 120.1bp     
- In supply news, in a poor auction, Germany auctioned E3.22bln of the 0% Sep-19
Schatz today at an average yield of -0.75% and a bid-to-cover ratio of 1.3x. 
- Additionally, KfW issued E3bln of a 5Y at mid swaps -34bp.

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