A delayed start to Eurex trading kept...>

EGB SUMMARY: A delayed start to Eurex trading kept total trading volumes lower

than have been seen earlier this week. 

- The Bund contract opened relatively unchanged but there was a sudden bid to

Italian paper, as is often the case these days, this was not driven by obvious

news, although there is no peripheral supply next week.

- That outperformance faded a little but the 10Y Bund-BTP is still 3bp tighter

on the session at 138bp. The Bund-Bonos is 2.0bp tighter.

- Eurozone HICP was revised marginally lower 1.007%Y/Y from the previous

estimate of 1.046%Y/Y. EGBs reacted positively to this information and the 10Y

Bund yield shed 0.5bp. As the US awoke, global bonds sank and this took the Bund

contract down to 158.00, at which point the roundness of 158.00 provided support

allowing a small drift higher toward the close. The 10Y Bund was last unchanged

at 0.575%.

- Belgium announced a range of E3.0-3.6bln for next Monday's auction of 5Y, 10Y,

15Y and 50Y debt.

- Most analyst commentary received has been bullish on Bunds.