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Waiting for the Fed

EGB SUMMARY
  • EGBs have caught a bid ahead of tonight's FOMC meeting with risk sentiment seemingly deteriorating in Europe but on no real headline triggers.
  • European equity indices are underperforming their US counterparts while Bunds have followed Treasuries higher (but gilt have largely remained immune to the rallies today).
  • Peripheral spreads have shown little to write home about, with BTP spreads a bit tighter but all others largely unchanged.
  • Bund futures are up 0.17 today at 174.17 with 10y Bund yields down -1.5bp at -0.495% and Schatz yields down -0.6bp at -0.700%.
  • BTP futures are up 0.39 today at 146.48 with 10y yields down -3.2bp at 0.965% and 2y yields down -1.7bp at -0.177%.
  • OAT futures are up 0.27 today at 168.32 with 10y yields down -1.8bp at -0.230% and 2y yields down -0.5bp at -0.638%.

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