Bunds have underperformed USTs and......>

EGB SUMMARY: Bunds have underperformed USTs and gilts today with 10y Bund yields

rising to their highest level since May. There doesn't seem to be a clear driver

of why Bunds have underperformed UST other than there has recently been quite

sizeable issuance across both the sovereign and corporate space in the Eurozone.

- Peripheral spreads have also been rather steady today despite the risk on

sentiment with the exception for BTPs which have seen spreads widen, although

this only reverses some of the tightening seen on Friday.

- Looking ahead we have little in the way of top tier data through the rest of

the week.

- Bund futures are down -0.58 today at 170.77 with 10y Bund yields up 4.1bp at

-0.160% and Schatz yields up 1.1bp at -0.593%.

- BTP futures are down -0.76 today at 142.68 with 10y yields up 7.0bp at 1.389%

and 2y yields up 3.7bp at -0.35%.

- OAT futures are down -0.64 today at 163.31 with 10y yields up 4.9bp at 0.091%

and 2y yields up 1.3bp at -0.567%.