The 10Y bund futures opened higher......>

EGB SUMMARY: The 10Y bund futures opened higher this morning at 161.24, but then

lost some ground currently trading 5 ticks lower at 160.99. The move appears to

be on relatively thin volumes with not much in the way of large trades.

- In terms of supply news the Italian treasury auctions a new E2.5-3.0bln CTZ

Oct-19 and taps E 0.75-1.25bln BTpei 1.3% May-28.

- There will be the ECB monetary policy decision later today at 1245BST and ECB

President Mario Draghi is due speaks to the press later in the afternoon at

1330BST. The market is expecting a 9-month extension of the ECB's QE programme

at a rate of E30bln per month.  

- There was some heavy swap flow this morning with both payers and receivers at

the front-end of the curve. Swaps are underperforming at the longer-end of the

curve.

- The Spanish unemployment data came in lower than expected in some positive

news for the country. The Bund-Bonos spread remains relatively unchanged at

116.9bp.