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The EGB rally took another leg higher...>

EGB SUMMARY: The EGB rally took another leg higher following the release of weak
US employment data Friday, with core yields and periphery spreads falling fast.
- The 10-Yr Bund yield hit a fresh record low of -0.262% post-US data (last at
-0.259%). Sep Buxl futures hit 200.
- Indeed, German curves flattened hard with long duration a theme; 2Y30Y Spread
-1.9bps at 99.1bps, 5Y30Y -1.7bps at 92.2bps (both hit cycle lows earlier).
- Italian BTPs have rallied hard as well, with investors apparently reaching for
yield. 2-Yr and 10-Yr yields fell as much as 21bps though have since retraced.
- Spain/Portugal 10-Yrs are 4bps tighter to Germany; Greece in 7.5bps.
- Between U.S. moves and Thursday`s ECB, several Euribor contracts hit new highs
though are slightly off day`s best levels; Reds/Greends up 2.5-3 ticks.
- Latest futures prices:
* Sep Bund futures (RX) up 35 ticks at 171.74 (L: 171.25 / H: 171.8)
* Sep BTP futures (IK) up 136 ticks at 131.21 (L: 129.96 / H: 132.14)
* Sep OAT futures (OA) up 50 ticks at 163.72 (L: 163.09 / H: 163.95)

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