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It took a while but the EGB market......>

EGB SUMMARY
EGB SUMMARY: It took a while but the EGB market has woken up in the past few
minutes. The German yield curve is registering a 1.5bp decline in the 10Y yield
and there is a small bull curve flattening.
- French debt is underperforming and Italian BTPs are outperforming but
movements are small, so far.
- Overnight saw the yen lose some of its gain from yesterday but there has not
been a strong risk trade at all.
- Overnight, the US 7Y note auction stopped 1.1bp through the WI yield in what
was a very strong auction. 
- It is the last day of the month and quarter and so there is attention on how
crazy the repo market might become and the month-end extensions. For EGBs the
Bloomberg-Barclays Euro Agg Tsy index is projected to extend by 0.06Y, similar
to last Sept/Oct but larger than the 12 month average of 0.03Y. The US Tsy index
rises 0.07 and Gilts by 0.08Y.
- Talking points include the Catalonia referendum but there is no obvious impact
upon Spanish debt today.

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