/EGBS: And TD analysts also "don't expect...>

US TSYS: /EGBS: And TD analysts also "don't expect as much scarcity of Euro

collateral or short positioning in Bunds as last year. And finally over the next

week, we expect bill supply to decline into the Dec.8th (US) debt ceiling

deadline. However, liquidity concerns into the turn (year-end) and impending

Mifid 2 can certainly widen the basis some more."

- They add that "the 3m EUR/USD cross currency basis could widen into yearend,

and it could reach -60bp, but we don't see it revisiting the -80bp wides of

2016. The 12bp spike in Eonia over the last two days is interesting as it has

occurred amid light volumes and without any obvious trigger. If this move

continues, it could tighten the EUR/USD cross currency basis, but we don't see

these Eonia spikes as a start of a new trend."