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The Brexit negotiation dominated the....>

EGB SUMMARY: The Brexit negotiation dominated the early  holiday-effected
European trading session. UK Gilt yields rose by around 6bp higher and Brexit
optimism has depressed many EGB markets. The 10Y Bund yield initially rose 2bp
and the curve steepened. 
- Lower quality government credits have performed strongly this morning as the
impact of the lack of new rules for the treatment of government bonds in
yesterday's Basel III announcement filters through. Governments keep their
preferential treatment and Greek debt is 28bp lower in yield today without any
domestic news. 
- The Bund-BTP spread also hit 14 month lows with a 4.5bp compression to 134bp
and the Bund-Bonos spread has also breached 25bp.
- In the afternoon, the low wage growth numbers from the US employment report
reminded everybody of the flatness of the Philips curve and nudged EGBs higher
so that heading into the close the German curve had net bear flattened on the
day; the Bund 1bp higher at 0.303%.
- Italy, Spain, Portugal and parts of Switzerland were closed. 

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