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US vs Germany

BONDS
  • Further small tightening in the Tnote/Bund spread, this was led by some of the sell off in Europe, after Villeroy's comment on the EUR.
  • Bund is fairly illiquid so far today, and the US/Germany 10yr spread test initial support at 193.45, this is the May's low and tightest level since late April.
  • Better support is seen at the 26th April low, 190.59.

Chart source: MNI/Bloomberg

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