Bunds opened down slightly as the.......>

EGB SUMMARY: Bunds opened down slightly as the markets have a risk-on feel.

Asian equities were mostly firmer, gold has melted away from highs and the yen

reverses some of the recent gains.

- As European trade began, the futures markets witnessed some small selling in

the US Treasury future and some payers in 20 and 30Y swaps were noted. The sizes

were not large but liquidity is thin.

- The German curve is bear flattening today: the 2Y is +0.3bp at -0.713%, the 5Y

is +0.6bp at -0.278%, the 10Y is +1.1bp at 0.41% and the 30Y +1.1bp at 1.162%.

- There is very little in the way of individual movement amongst the Eurozone

credits. 

- A talking point appears to be the very one-sided positioning of long

euros/short dollars, the massive equity inflows into Europe that particularly

come from the US. With Jackson Hole approaching, some see the euro's strength as

fragile unless Draghi announces a taper at Jackson Hole.