The 10-year Bund yield was lower........>

EGB SUMMARY: The 10-year Bund yield was lower today and is currently trading

near its intra-day low of 0.446%. The move lower was most likely initiated this

morning by weak China Caixin Services PMI data.

- The Catalan regional President Carles Puigdemont is tentatively scheduled to

address the region's parliament Tuesday evening, but has not yet confirmed if he

is going to declare independence. Yields on the 10-Year Spanish government bonds

fell in early morning trading, but has since recouped some losses and is

currently trading -3bp lower. The Bund-Bonos spread is tighter on the day, but

is inching higher towards Friday's close of 125.03bp. 

- In terms of other peripheral countries, the Italian 10-year government bond

yields were dragged lower by the move in Spanish government bonds. The BTP yield

is lower -2.7bp and the BTP-Bonos spread is currently trading at 43.5bp.

- The ECB's PSPP increased by E13.796bln to E1.762tn in week ending Oct 6th.

- Tomorrow Germany tap a 10-year Bund linker for E1.0bln and Finland tap 5-year

RFGB for E1.0bln. The EFSF is expected to launch 6-year syndicated Euro deal.