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The Bund contract has moved slightly....>

EGB SUMMARY
EGB SUMMARY: The Bund contract has moved slightly higher in predictably quiet
trade on Wednesday. The 10Y Bund yield is currently 0.8bp lower at 0.412% as the
contract has already broken through the 22 Dec high. 
- Peripheral spread to Germany are mostly stable, the biggest mover being the
10Y Bund-GGB spread tightening 2bp to 369bp.
- Most chatter surrounds the EURUSD flash crash on Christmas Day and the spike
in oil prices yesterday. 
- News is thin this week, highlighted by preliminary German inflation on Friday.
There is an Italian CTZ auction later this morning and 4 lines being sold by
Italy tomorrow. Friday will bring month-end extensions that reach 0.07 years for
the UST market and a miserly 0.01 years for EGBs according to
Bloomberg-Barclays. However, the day also represents quarter and year end, which
together with thin liquidity might precipitate larger movements. 

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