European debt markets have seen small...>

EGB SUMMARY: European debt markets have seen small gains with a familiar

outperformance by the peripheral markets, helped by the low level of volatility.

The German 10Y Bund yield is 0.4bp lower at 0.338%.

- Alongside improved debt markets, European equities have carved out gains

demonstrated by the 0.5% rise in the eurostoxx. All assets appear to be rising

today.

- Datawise, Eurozone Oct M3 numbers came in slightly light of expectations at

5.0%Y/Y, down from an upwardly revised 5.2%Y/Y. However, bank loans to

corporates leapt strongly.

- German Oct import prices continued to grow above inflation at 2.6%Y/Y driven

by energy.

- In the past days, the EUR FX rate appreciated close to the all-important 1.20

level against the dollar but has moved further away from that to 1.1889 today.

- Irish political problems appear to be having no impact upon Irish debt. Behind

the scenes activity is frenetic at the moment aimed at avoiding a collapse of

government later today.