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"As far as the Merkel/Sarkozy meetings go expectations were very low, they couldnt have come out with any great thunderous announcements, mainly because of the politics, otherwise what is the EU its just a Franco German controlled zone," Patrick Perret-Green, head of FX & rates strategy for Asia Citi, told CNBC. "We are very much trading in tandem, it's banking stocks and bond markets. For treasuries and bunds it's something like a 94 percent correlation with bank stocks," he added.
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