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The EGB market started the day on a.....>

EGB SUMMARY
EGB SUMMARY: The EGB market started the day on a soft note in a catch-up to
hawkish FOMC Minutes. The moments after the opening represented the low print of
the day for the Bund contract and quickly the market rallied.
- Weak German IFO data and a downward revision to UK Q4 GDP data pumped the EGB
market high still. 
- Greek debt performed well in the glow of a 2 notch upgrade by Moody's on
Wednesday evening but other peripheral markets sank in quite ugly fashion soon
after the US market opened. Initially, the BTP future led the widening but it
wasn't long before the malaise spread. Going into the close Bund-PGB was 7bp
wider at 134bp, Bund-BTP widened 5bp to 138bp and Spanish debt wasn't far
behind. Italy auctions debt tomorrow and next Tuesday and, combined with the
approach election on Mar 4, weakness was understandable.
- The account of the January ECB Monetary Policy meeting caused an immediate
spike higher when headlines hit the screens but closer inspection produced few
fresh nuggets of wisdom and the move quickly reversed.

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