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The pullback witnessed in Tsys has left........>

EGBS
EGBS: The pullback witnessed in Tsys has left German FI futures off their highs,
although the contracts have ticked away from their Asia-Pac lows after the
reaction to the latest PBoC CNY fix faded. Schatz -3.5, Bobls -12.0, Bunds -26.
- Soft German ind. prod. data was noted y'day, although Chinese dynamics
outweighed. German 30-Year yields extended further into -ve territory Weds, but
finished off lows.
- Peripheral politics will be at the fore today. Italian Dep PM Salvini has once
again cast doubts over the longevity of the ruling coalition, while the Corriere
pointed to him giving PM Conte an ultimatum re: replacement of certain
ministers. The political haze may limit the 10-Year BTP/Bund spread's follow
through < 200bp. Elsewhere, acting Spanish PM Sanchez is to meet with biz
leaders, while the Greek PM faces his 1st major political test, centring on a
decision to replace the chief of the country's independent competition
authority, even though she hasn't been accused of any wrongdoing. Finally, the
Portuguese gov't declared a preventive state of energy emergency ahead of a
truck drivers' strike. The latest ECB econ bulletin headlines a light docket.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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