It was a slightly bearish day for.......>

EGB SUMMARY: It was a slightly bearish day for core European bonds in the end,

and the yield curve steepened. 

- The Schatz contract moved back to the lower end of the upward trend channel

that has been in place for a month and bounced. On Thursday, that support level

sits at 112.13, around 3 cents below current levels. The 30Y section of Germany

was easily the worst performer on the curve. 

- The German Bund 10-Year is 1.3bp higher at 0.446% but the yield had reached

0.448% at the worst point on the day; the highest level for a week.

- The Eurozone Q2 GDP print was the only significant data release on Wednesday

and was released in line with the pre-flash estimate of 0.6%Q/Q. Eurozone growth

is definitely building momentum.

- EGB prices also spiked when Reuters reported that Draghi would no address

policy changes at Jackson Hole.

- Peripheral spreads to Germany declined strongly on the day. Italian, Spanish

and Portuguese spreads each tightened 2-3bp at 10-Years.