Bunds saw a decent sized bullish flattening....>

EGBS: Bunds saw a decent sized bullish flattening over the course of the day.

The 10Y Bund yield is 1.8bp lower at 0.409% but the 30Y sector did better still.

Equity markets were weak, gold and VIX higher but there was little movement in

the Euro FX rate.

- It was a risk-off day started by the tragic events in Barcelona but continued

jitters in equity markets upon concerns over the longevity of Gary Cohn in the

Trump cabinet.

- Flows also had outsized effects. In the futures markets, there was a notable

Schatz to Bobl flattener trade in the morning. Additionally, a very large EUR 4Y

swap receiver soon after US trading got underway in the European afternoon.

- Peripheral EGB market movements were fairly uneventful. The Ibex stock index

began weakest but by the close of play, it's 0.9% drop was in line with others.

There was no obvious impact upon the Spanish yield curve from the terrible

attack.

- The Bund-BTP spread was 1.1bp wider at 161bp on Friday.