Bunds opened 84 cents higher, fell......>

EGB SUMMARY: Bunds opened 84 cents higher, fell rapidly, rallied into the US

equity market open and then trailed back down again as the Dow future started

rising an VIX fell like a stone. It was a volatile day but going into the close,

the net change in the 10Y yield was a decent but not panicky 4.4bp decline to

0.692%. 

- Apart from the ebb and flow of stockmarket fears, a lot went on

- German orders for December jumped well above consensus to 3.8%M/M and German

Union IG Metall agreed a complicated wage settlement that market contacts

estimate to be worth a robust consistent with annual wage increases of 3.7% in

2018, and 4.1% in 2019. 

- On the supply side, the new 15Y Finnish deal being done by syndication saw

strong demand with >E11.3bln book for E3bln being sold. We hear that the Greek

7Y was put on ice until markets calm. 

- Germany issued E1bln of a 2026 linker, without any difficultly.

- Greece pulled their deal given the extreme market movements.