Over the course of the morning, there...>

EGB SUMMARY: Over the course of the morning, there has been the smallest of

curve pivoting in Germany and very little net change in almost any of the major

debt markets.

- Yet, the net movement hides a fair weakening in the Bund in the early morning

and then a subsequent recovery.

- Economic data have shown little influence upon bond prices. European PMI

indices generally came on the weak side of expectations, although a look in the

details did show slightly firmer price pressures.

- Eurozone retail sales data for July hit consensus at 2.6%Y/Y, a slight

moderation from the prior month.

- Austria successfully sold 10Y and 20Y debt and there has been a 1bp tightening

in the Ger-Aus 10Y spread from early trading this morning.

- The UK 50Y Gilt is also being syndicated and has Stg21bln in orders.

- Currency markets have been quite eventful, with the euro dropping and

recovering quite suddenly and inexplicably.

- US markets return from Labor Day later and Brainard is to make a speech.