For the most part, the EGB trading......>

EGB SUMMARY: For the most part, the EGB trading day was a case of inching up and

down and as the Jay Powell testimony approached, there was a slow bleed to the

lows of the day.

- With the low volatility environment, the peripheral markets were outperforming

in a fairly slight way and mostly at the front end of the yield curve. 

- Eurozone Oct M3 data printed lower at 5.0%Y/Y vs 5.2%Y/Y in the previous

month. However, lending to corporates exploded and is possibly linked to the

TLTRO rate subsidy that is linked to loan growth from Feb-16 to Jan-18. It may

presage more strength to come.

- News that Ireland had avoided an early election due to the resignation of the

Deputy Prime Minister hardly created a ripple in the Irish market.

- Portuguese debt was under some pressure. In just over 2 two weeks, there is an

important Fitch ratings decision on Portugal that could provide the country with

a second investment grade rating and aid inclusion in some bond indices. 

- Going into the European close, the 10Y yield was almost unchanged at 0.34%,

flattening very slightly.