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***A lot of research reports are coming out....>

EGBS
EGBS: ***A lot of research reports are coming out bullish on Bunds next week.
Staple reasons:
- Low supply
- Scarcity of Bunds even if the ECB has reduced QE
- Expected softening in survey data coming from the Eurozone next week (PMIs,
IFO and ZEW). Commerzbank see the ZEW dropping 20 points to -5.0 and the talk of
trade wars and strong euro will hurt the PMIs.
- Uncertainty from Italy keeps a bid to core Europe.
- However, the market is split on whether the new Fed dotplots will indicate 4
hikes in 2018. Views on Treasury market direction are more diverse.

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