For the debt markets, it was a..........>

EGB SUMMARY: For the debt markets, it was a strange session. The Eurozone PMI

data came in strong, the 10Y Bund auction was very poor and yet by the end of

the session, any losses had been made back, and then some.

- Bunds could probably have weakened by a greater amount in the European morning

except for a sudden widening in the BTP spread soon after the text of the Draghi

speech was released. The weakness in the periphery provided some support for the

core. However, it was only when US traders woke up did the rally in Bunds really

begin in earnest.

- The selling of Italian debt also picked up a little speed later in the session

but rebounded off the 176bp peak. However, the 10-Year BTP did not see

particular selling; this selling was mostly reserved for the 15- to 20-Year

area.

- By the end of the session, the 10-Year Bund yield was at 0.377%, a decline of

2.6bp and leaving the yield almost precisely on top of the 200 day moving

average.