Bunds played the Tuesday session on.....>

EGB SUMMARY: Bunds played the Tuesday session on the defensive as the contract

gradually wove a downward trajectory. There was an absence of market moving data

until the US JOLTS data surprised to the upside with a big leap in job openings.

- This news sent the Bund yield to 0.471% (+1.3bp on the day), but a rapid

setting of UST shorts ahead of the 10Y auction and a flurry of S&P mini trades

as the index hit all-time highs added a little more to leave Bunds close to

session lows and the yield at 0.477%.

- Spanish debt was strong as the absence of supply and news that the ECB is

still buying large amounts of Spanish debt helped. Italian debt struggled to

keep pace Iberian debt performance  as statistics showed quite strong selling of

government debt by Italian banks in June. This story appeared in an increasing

number of places as the day progressed.

- Austria sold E1.1bln of 2023 and 2047 debt. Auction statistics were good but

the 2023 immediately underperformed as dealers quickly exited a fairly illiquid

security.