Most of the action has been in FX.......>

EGB SUMMARY: Most of the action has been in FX this afternoon.

-Big moves in USD as well as GBP, is where most of the action has emerged today.

-Better GBP selling across the board dominated price action, but wih very little

in terms of spillovers into Bonds.

Better USD throughout the day, quickly reversed upon the US ISM release, which

showed the lowest ISM Manu employment component since Jan 2016. Last time ISM

Employment component was this low, NFP missed forecast by 100k (90k vs. Exp.

190k).

-Bund and EGB's quickly faded the early selling taking their cue from the big

Treasury rally from the low of the day to the high of the day.

-Peripheral are still mixed once again today, staying within ranges and close to

flat vs the German 10yr.

- Bund futures are down -0.30 today at 173.95 with BTP futures down -0.41 at

145.43 and OAT futures down -0.38 at 169.93.