In the London morning the Dec-17 10Y....>

EGB SUMMARY: In the London morning the Dec-17 10Y Bund contract traded slightly

lower as it followed the Treasuries, which were softer in Asia. However, the 10Y

Bund contact has recovered some of its losses and is trading at 162.71. The 10Y

Bund yield is 0.4bp higher at 0.367bp. The markets remain thin today as there

are public holidays in Austria, Belgium, France, Portugal and Spain.

- The Spanish government has called the ex Catalonian President Puigdemont to

court on Thursday. Although, some members the team that accompanied him to

Brussels have returned to Spain, it appears that Puigdemont will not return at

the present time. In early morning trading the Bund-Bonos spread is 0.8bp

tighter at 108.9bp.

- Following on from yesterday, the peripheral markets particularly that of Italy

are bid. It is primarily the 7-8Y part of the Italian yield curve that is the

star performer. The Bund-BTP spread is trading 1.5bp tighter at 108.8bp. There

is 15.6bln of cash inflows from Italy today.  

- Much of today`s the attention will focus on US data with the the US ADP

Employment Report at 1215GMT being the focus.