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The main overnight headline has been....>

EGB SUMMARY: The main overnight headline has been the increase in US tariffs on
Chinese import, but there has been little reaction either in Treasuries or
Bunds. Bund futures are down -0.09 today at 166.17 with 10y Bund yields up 0.4bp
at -0.44% and Schatz yields up 0.3bp at -0.630%.
- Data this morning has been mixed, with better than expected German trade data
and French earnings/employment data but worse than expected French industrial
production. Italian IP and retail sales are also due for release today.
Additionally, there are a number of ECB speakers today. Villeroy and Praet
headlines have already begun to hit the wires (although not related to mon pol)
while Lautenschlaeger, Visco and Coeure are all scheduled to speak later today.
- After big swings in BTP-Bund spreads over the past couple of days on concerns
about the Carige bailout and potential tax cuts, spreads remain around the
middle of the range of the past couple of days at 270bp, down around 3bp from
yesterday's close.
- Other spreads to Bunds are largely unch on the day.
- The only issuance scheduled today is the Italian 12m bill auction.

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