European fixed income markets have......>

EGB SUMMARY: European fixed income markets have been bombarded by economic data

this morning and almost no matter what the release was, EGBs showed no reaction.

Instead, a Reuters story that stated the obvious point that the appreciation of

the euro will influence the QE decision produced the greatest debt market

response -- a 0.5bp decline in yield. 

- Relative to yesterday's close the 10Y Bund yield is 0.5bp higher today, with a

very slight German curve steepening.

- Peripheral debt benefited strongly from the Reuters article that suggested the

QE exit might be delayed. Portuguese debt is also being assisted by stronger

than expected GDP data and leads spread contraction to Germany with a 4.6bp

tightening. The Bund-BTP spread is close behind with 3.4bp narrowing to 168.7bp.

- Eurozone CPI data rose above the screen consensus to 1.5% in August from 1.3%,

although the core matched the consensus and July's print of 1.2%. Some of the

expectations beat was anticipated owing to yesterday's strong German CPI data.