Nearly all EGB bond yields were.........>

EGB SUMMARY: Nearly all EGB bond yields were higher in early European trade,

following on from late weakness in the US market. The Bund yield is +0.7bp at

0.425%. Italy has caught a small bid.

- Once again, the UST 2Y yield hit a fresh nine year high as the market looked

forward to a plethora of Central Bank speakers at an ECB conference on Central

Bank communication over the coming two days.

- Gold prices weakened in what looked like a sudden bout of gold selling in the

future and placed further downward pressure on Bund prices.

- Spanish Oct CPI data showed a very weak print for the core measure, mostly

because of weak service sector prices although the impact on the market was

limited. 

- Peripheral spreads are slightly tighter this morning although much of the

strong Greek performance seen yesterday is being unwound and the spread is

already 4bp wider at 470bp.

- Apart from the ECB conference the market is looking forward to 2Y supply from

Germany and 10Y supply from the Netherlands.