EGB markets are feeling the pressure....>

EGB SUMMARY: EGB markets are feeling the pressure of heavy supply today

alongside a small risk-on sentiment in markets. The Dax has opened 0.5% higher

and initially the Bund contract opened down 10 ticks.

- However, since the slight drop in the Bund contract, the weakness did not stop

and the contract has traded consistently lower and is currently resting on top

trendline support at 162.56. A break of this would not face good support until

162.47.

- The 2Y Schatz is +0.5bp at -0.746% and the 10Y Bund yield is +1bp at 0.348%.

Spanish markets are looking heavy again following reported sales by domestic

banks yesterday.

- Austria is taking IOIs for benchmark sized 5Y and 100Y deals today and Finland

is doing some dollar issuance. Neither curves are suffering unduly because the

announcements came yesterday. 

- The Netherlands sells 10Y debt and Germany has a small amount of a 30Y linker

later today. 

- The US is also in the middle of its weekly supply.