After moving gradually higher through...>

EGB SUMMARY: After moving gradually higher through the day, the pace of the Bund

rally has picked up since around 14:15BST with 10y yields hitting a record low

of -0.428% at the time of writing.

- There doesn't seem to be a clear catalyst for the move, although the MNI

Chicago PMI fell substantially to 44.4 from 49.7. There may also be some

positioning moves ahead of the Fed tonight while month-end flows are likely too

small to explain the move.

- Semi-core spreads are generally unch on the day while peripheral spreads have

tightened.

- The biggest move in spreads has been in Ireland where spreads have tightened

by over 4bps at the time of writing as GBPUSD has recovered some of the losses

seen over the past few days (there has been no significant "news" on Brexit

today).

- Bund futures are up 0.42 today at 174.97 with BTP futures up 0.40 at 139.74

with OAT futures up 0.36 today at 167.12.