A very quiet and slow start to..........>

EGB SUMMARY: A very quiet and slow start to European rates markets this morning.

So far, the Bund contract has traded within a 162.61-162.77 range. 

- There is some oddity in the opening moves. The yen has weakened in response to

dovish comments by the BoJ's Sakurai and, as usual, the Treasury market followed

downwards in price. However, the Bunds market actually moved higher.

- The FT is carrying an article talking of the ECB's QE extension although no

ECB sources.

- Having overcome the storm, there is a decent bid in the Irish market, with a

modest buyer in the 5Y area. There is a E6.3bln Irish bond redemption today so

it looks like a roll-over. This has helped take the German-Irish 10Y spread 1bp

lower to 23.5bp, its lowest since 2008. Ireland already looks fully funded for

2017. 

- Along the yield curve, the 30Y sector of Germany is flattening the spread to

the 10Y despite the E1bln sales of the Bund 2048 later this morning. 

- On the data front, there is nothin of note that is European. Tomorrow sees the

deadline for Catalonia to clarify its independence declaration.