The 10Y Bund futures started its........>

EGB SUMMARY: The 10Y Bund futures started its downward trajectory for the day

early in the London session as UK GDP and German IFO data came in

better-than-expected. In the London afternoon, a sudden drop lower in the

Treasury market set off a number of stop-losses. This helped push Bunds to the

session low of 160.76. However, the futures contract recovered some ground and

is trading at 161.03.

- The Bund-Bonos spread tightened to the day's low of 113.6bp as Spanish PM

Rajoy commented in Parliament that the solution to the Catalan problem was

through fresh elections. However, the Bund-Bonos spread slowly inched higher

after reaching the lows and spiked to 116.7bp once news came that the Catalan

President Carles Puigdemont will not attend a debate in the Spanish Senate on

Thursday. The spread is heading into the London close 1.9bp tighter on the day

at 116.2bp.

- The swap market was active; a number of curve trades were done as investors

increasing look to make efficient duration bets via curve strategies.