Core fixed income is on the front.......>

EGB SUMMARY: Core fixed income is on the front foot this morning but Bunds are

underperforming USTs and gilts.

- German GDP data this morning revealed that the German economy avoided

technical recession. Growth for Q3 came in at 0.1%Q/Q, against expectations of a

-0.1%Q/Q fall. However, this does come on the heels of Q2 data that was

downgraded from -0.1%Q/Q to -0.2%.

- Other data was more mixed with the French unemployment rate picking up,

Portuguese GDP disappointing by 0.1ppt and Spanish HICP surprising by 0.1ppt to

the upside - although only for the M/M and not the Y/Y measure.

- Spreads a re a little wider on the day, led by GGB-Bund spreads.

- Bund futures are up 0.27 today at 170.63 with 10y Bund yields down -2.0bp at

-0.322% and Schatz yields down -0.7bp at -0.638%.

- BTP futures are down -0.06 today at 141.35 with 10y yields unch at 1.243% and

2y yields down -0.6bp at -0.80%.

- OAT futures are up 0.25 today at 167.07 with 10y yields down -2.1bp at -0.10%

and 2y yields down -0.7bp at -0.603%.