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The main political focus on the.........>

EGB SUMMARY
EGB SUMMARY: The main political focus on the European front are developments in
Germany. Although, talks between German Chancellor Angela Merkel and possible
coalition partners collapsed the markets did not appear to think it would have
much of an impact on growth. The 10Y Bund contract opened marginally lower, but
has since rallied higher and is currently at 163.08 hovering near the morning's
high of 163.09. The German yield curve is flatter with the 30Y part of the curve
outperforming the most.
- Last night Italy's Finance Ministry announced that it will carry out a buyback
of Government bonds on Wednesday Nov22.
- The peripheral market debt is outperforming this morning with the Bund-Bonos
spread tighter by 0.5bp and the Bund-BTP spread tighter by 0.8bp.
- The European data calendar is thin for today with the Spanish Trade Balance
figure due to be published at 0900GMT. Markets will be eyeing the Existing Home
Sales number for October, which will be released at 1500GMT.    
- Looking at supply Finland is set to auction of RFGB 0.5% Sep-27 with auction
results set to be announced at 1105GMT.       

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