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US 10YR FUTURE TECHS

(U1)‌‌ Top End of Range

FED

NY Fed Operational Purchase

EMERGING MARKETS

Financials Find Support at 200DMA

BONDS

EGB/Gilt - Yields hit multi months low

EGBs have opened the week fairly........>

EGB SUMMARY
EGB SUMMARY: EGBs have opened the week fairly flat, with limited reaction to
weekend headlines from the WSJ which noted that China has cancelled the planned
trade talks with the U.S. amid escalation of tariff threats.
- The Dec 18 Bund future is up 5 ticks at 159.05, with the curve bull flattening
slightly: The 2-Yr yield is down 0.2bps at -0.534%, 5-Yr is down 0.1bps at
-0.116%, 10-Yr is down 0.2bps at 0.46%, and 30-Yr is down 0.4bps at 1.117%.
- Periphery EGB spreads are a little wider, but generally steady, with the
Italian budget due to be agreed by the government on Thursday. The spread of
10-Yr Italian BTPs vs Bunds is up 2.4bps at 239.2bps; 10-Yr Spain is down 0.2bps
at 103.1bps; Portuguese PGBs in 0.2375bps at 140.5bps; Greek bonds out 0.7bps at
361.5bps.
- Euribor futures are largely flat, though Mar19-Mar20 are down 0.5 ticks each.
- A fairly chunky week for data gets underway at 0800GMT with the release of the
German IFO Survey for September. The August reading was 103.8.
- ECB President Mario Draghi is speaking in Brussels at 1300GMT.