EGB/GILT SUMMARY: An eventful early.....>

EGB SUMMARY: EGB/GILT SUMMARY: An eventful early trading session Bonds.

-Bund and US Treasuries moved lower on better buying of Estoxx and S&P but with

Equities back at stable levels, difficult to pinpoint the actual trigger.

Instead, we can look at a combination of potential reasons.

- Weak JGB auction and BOJ said that It may stop buying debt due more than 25

yrs. Downside continuation in the Bonds.

-Italian budget taken positively by the market.

- Brexit hope/lower betting odds of hard Brexit, with likelihood of a "No Deal"

exit on the 31/10 just standing at 17%..

-On the data front, PMI release from Spain, Italy, France, Germany and EC, were

below consensus, beside, EC showing a 1 tenth beat.

-Peripheral are a touch tighter against the German 10yr, given the 100 ticks

move lower in the Bund.

-GILTS price action was mostly driven by the European curve, trading lower, with

the contract gaining further downside momentum following the UK PMI beat at 48.3

vs 47 expected.