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Weakness In Tsys & Hedging Of EU Supply Provide Some cheapening Impetus

BUNDS

Spill over from the previously outlined move in U.S. Tsys and hedging pressure surrounding the pricing of a cumulative EUR9bn of EU paper, in the form of the new 2.75% Oct-26 bond and tap of the 3.00% Mar-53 paper, apply pressure to the German FI sphere, although Bund futures failed to challenge their session lows, with the contract last -2 on the day after retracing from the extremes of the move. The major German cash benchmarks run 0.5bp richer to 1bp cheaper on the session, with the wings of the curve weaker and the belly a touch firmer.

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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