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The EGB market is soft today. The 10Y bund.....>

EGBS: The EGB market is soft today. The 10Y bund yield opened 1.8bp higher
relative to its close on Friday and has added another 1.0bp to this through the
European morning, with the 10Y at 1.733%. However, non-German debt is weaker
still. Initially, non-German weakness was led by Italy and the Bun-BTP spread is
2pp wider at 130bp but France, Belgian, Dutch and Irish debt have all widened
- The fast-approaching Italian election are said to be behind the German debt
outperformance today.
- The US market is shut today but there is concern about the massive 3 day
funding period for the US, which tots up to $258bln between bills, a Treasury
FRN and 2/5/7Y coupons.
- European supply is fairly limited this week. Earlier today Slovakia easily
sold around E160mln of 15Y and 30Y debt. 
- There are no significant data releases or speeches today although the
Eurogroup is widely expected to appoint Spanish Economy Minister De Guindos as
the next ECB VP later today.

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