JGB's came under pressure from a........>

EGB SUMMARY: JGB's came under pressure from a sharp sell off in UST's, some stop

loss selling triggered by TYH8 making new lows for the month and the 10-Year

yield rising above 2.68% saw heavy volumes, around 35k contracts traded the move

lower from 122.01 to 121.27, on the session was a whole volume was about 1.6x

average. This price action was responsible for a 20 tick decline in the Bund at

the open, with pressure again centred on the 5Y.

- The 5Y Obl yield is already 3.3bp higher today at 0%, the first time this

level has been seen since Dec-2015. It is a significant line in the sand if

price action is observed at that time.

- Another possible restraining influence upon the Bund will be the gap left at

the open, which requires a move back to 159.66 for it to close.

- ECB's Klaas Knot said that the ECB's APP needs to end 'as soon as possible'.

- It is a big week with Yellen's final Fed meeting on Wednesday and payroll data

on Friday. European attention is firmly on inflation at present and German CPI

data gets the January numbers started tomorrow.