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The ECB failed to deliver a dovish......>

EGB SUMMARY: The ECB failed to deliver a dovish enough message for markets
Thursday, weighing on core EGBs and paring back rate cut expectations slightly.
- Key ECB takeaways were: fairly in-line TLTRO terms (despite initial confusion
on release due to muddled language), but market fixated on guidance revised to
"at least through the first half of 2020". Apparently more was expected.
- The key moves were in Dec19 through Jun20 Euribor futures, which retraced all
the week`s earlier gains (last down 2.0-2.5 ticks).
- Peripheries traded mixed on the announcement, but have largely retraced moves.
- Italy/10-Yr Bund spread 1.4bps wider; Spain /Portugal /Greece 3-4bps tighter.
- 10-Yr Bund yields rose about 5bps after the announce, but back near pre-ECB
levels. Short-end underperforming: 2-Yr yield up 2.4bps at -0.653%, 5-Yr up
2.7bps at -0.579%, 10-Yr down 0.3bps at -0.229%, 30-Yr down 3bps at 0.371%.
- Latest futures levels:
* Sep Bund futures (RX) up 9 ticks at 171.25 (L: 170.64 / H: 171.54)
* Sep BTP futures (IK) down 1 ticks at 129.76 (L: 129.27 / H: 130.49)
* Sep OAT futures (OA) up 47 ticks at 163.1 (L: 162.44 / H: 163.35)

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