Strategist Rainer Guntermann at Commerzbank....>

EGBS: Strategist Rainer Guntermann at Commerzbank writes that higher "US

Treasury yields are justified on the back of more Fed hikes and deteriorating

public-sector deficits, the re-pricing of the EUR curve appears out of sync with

the likely course of action from the ECB. Bund yields should thus stabilise with

fewer data releases and slowing supply next week, and for year-end we forecast

10y Bund yields at 0.6%."

- Commerzbank also note that closer EU-integration jumps out of a CDU/CDU-SPD

'GroKo' as this together with stronger growth sentiment should support further

peripheral tightening vs Bunds.