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Daily outlook for global fixed income markets

Quotes from Danske Bank:

-It is a fairly quiet week in terms of issuance from European debt offices as only Germany and Italy are coming to the market. There is a positive net cash flow given redemptions in Germany. Italy is expected to be launching a new 10Y benchmark and we expect underperformance in this segment relative to e.g. Spain and swaps.

-There will be some focus on Greece as it is set to present a reform list but an agreement has been reached and this should prove positive for Greece as well as the periphery. An interesting week ahead for the US market with Janet Yellen's semi-annual testimony Tuesday night, as she will probably address the very strong January employment report.

-We continue to look for upside to US rates mainly in the 2-5Y segment of the curve, as we believe the money market curve should steepen.

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