EGBs have had a volatile session this...>

EGB SUMMARY: EGBs have had a volatile session this morning, with yields now

tracking lower. Eurozone CPI came in at 2.0% Y/Y and core at 1.0% Y/Y. Although

EU leaders came to a tentative agreement on a migrant deal, the measures are

voluntary - suggesting that the current solution may prove temporary. 

- The bund market has had an erratic session so far. The benchmark 2-year bund,

in particular, has been volatile. Having surged to a high of -0.629%, the 2-year

yield quickly reversed down to -0.664%. Similarly the 10-year has rallied down

to 0.313% from a session high of 0.351%.

- French OATs have followed a similar path. The 2-year OAT yield hit a daily

high of -0.424% before falling to -0.467%, while the 10-year has traded a

peak-to-trough of 0.718% to 0.676%.

- Daily changes in BTPs remain pronounced. The 10-year BTP yield has pushed down

to 2.689% from 2.776% at the open, while the 2s10s spread has widened during the

session to 198.4bps from a intraday low of 192.8%.

- The EURIBOR futures strip has steepened with Greens/Blues down 1.0-1.5 ticks.