It has been a relatively quite day in...>

EGB SUMMARY: It has been a relatively quite day in the Bund market this morning

with much of Europe on holiday due to All Saints Day. German Bund yields are

steady to marginally higher with 10Y +1.2bp at 0.376%.

- The best performance of the day appears to be put on by the Italian market

where the entire curve is bid. This outperformance appears to be part of a

longer term trend fuelled further by the recent S&P upgrade amongst and large

coupon and redemption flows. The Bund-BTP spread is currently trading at its

tightest seen since October 2016 at 142.3bp, which is 4.1bp tighter on the day.

- The Belgian lawyer for former Catalan President Carles Puigdemont said that he

is unlikely to return to Spain in the coming weeks as reported by the AP. The

Spanish government has summoned the former Catalan President to appear in court

on Thursday. Bund-Bonos spreads have been following a tightening trend over the

past few days as the independence movement appears to be put on hold for the

moment. The Bund-Bonos spread is 1.6bp tighter at 108.1bp.

- The next potentially market marketing moving economic release will be ADP

Nonfarm Employment Change at 1215GMT.