EGB traders have a difficult choice.....>

EGB SUMMARY: EGB traders have a difficult choice today, what to do while waiting

for potential bombshells from Jackson Hole. One obvious desire will be to take

some of the risk off, lock in some profits if some exist and keep powder dry for

a reaction.

- As a result, the first trades today are reversing what has happened yesterday.

Bund yields are marginally higher and peripheral yields are slightly lower. 

- Along the German curve, the 1-3Y area is performing well. This is a

'safe-haven' port to ride out expected storms.

- Swap flows have been almost non-existent this morning. 

- Data has been headlined by final Spanish GDP, which showed no change to the

earlier reading of 3.1%Y/Y. Belgian business confidence is due for release at

1400BST.

- Technically, the 10Y Bund yield sits at the 200 day moving average of 0.377%.

Using the Bund contract and knowing that Jackson Hole can produce big swings,

there is a channel base support at 164.13 and the June 26 high is at 165.44 on

the upside.