Bund stepped down slightly at the.......>

EGB SUMMARY: Bund stepped down slightly at the open of European trade but

quickly recovered so that the Bund 10Y is now unchanged at 0.40%. Pressure on

the periphery has subsided awaiting the wise words of Draghi, who speaks in

Lindau at 0825BST this morning.

- The Asian trading session was mainly based around the flippant comments from

Donald Trump including the threat to shut down the government to get his wall

built and tearing up the NAFTA agreement. Fortunately, the equity markets only

dipped slightly on his speech.

- There was an odd spike higher in the Bund contract at the release of the

strong French PMI data that looked like someone hit the wrong button. This odd

move briefly took the contract to 164.52. German and Eurozone PMI data are also

due early this morning. 

- Germany sells E3bln of their 10Y benchmark at 1030BST today and the UK is

selling Stg2.75bln of 5Y paper.