Bunds have given back some of...........>

EGB SUMMARY: Bunds have given back some of yesterday's gains this morning. This

is despite an early 27k buyer of front month euribor contracts that briefly

caused a spike in prices across the entire yield curve. 

- That Euribor purchase was swiftly met with some more moderately-sized selling.

- The 10Y Bund yield is 1.1bp higher so far. There was initially some extra

pressure on the Dutch curve because of news that the Dutch-based telecoms giant

Altice is making a bid for the American cable operator Charter. The FT reports

that the deal could be worth a mammoth $185bln. However, initial DSL

underperformance has been clawed back.

- Italian debt is also clawing back some of its substantial widening seen

yesterday. The spread is at 156bp today and so has made back roughly half of the

widening seen yesterday morning on the North Korean news.

- The risk-off trade is not dead-and-buried as equity markets remain soft on

Thursday; the eurostoxx is down 0.25%.