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Holding Lower


China Repo Rates Fall on Wednesday


1- To 10-Year Rinban Conducted

EGB SUMMARY: EGB yields continues to push lower in the aftermath of Draghi's
comments on the possibility of further asset purchases should economic
conditions deteriorate further. 
- The EUR 5y5y forward inflation swap has rebounded sharply today and currently
trades at 1.21% up from 1.14 at yesterday's close.
- German bunds remain bid, with the curve bull flattening. Current yield levels:
2-year -0.753%, 5-year -0.663%, 10-year -0.305%, 30-year 0.268%.
- The French OAT curve has similarly flattened sharply on the back of the very
long-end outperforming. The 30-benchmark yield is down 11bp on the day and 2s30s
has narrowed 6bp.
- The early morning rally in Italian BTPs is still in play. Yields are 12-15bp
lower. The 10-year BTP-Obli spread has narrowed to 170.4bp down from 177.7bp.