- The 10Y Bund kept its upward pace.....>

EGB SUMMARY: - The 10Y Bund kept its upward pace this morning and are currently

trading near session highs of 162.23, which is the precise point at which there

is technical resistance(1.618 swing of 162.00-161.63. The move higher appears to

be on the back of rising tensions in Catalonia and the dovish comments by ECB

President Draghi yesterday and   

- The situation in Catalan is getting increasingly complicated as Spanish PM

Rajoy requests the Senate allowing him to dismiss Catalonia`s President. While

the Catalan Parliament is scheduled to vote on independence declaration at 1315

local time. However, recent headlines suggests that the socialists will not

participate in the Catalonia session vote. The Bund-Bonos spread has widened

significantly to 115.0 increasing by 3bp.

- The current widening in Spain so far has not impacted other peripheral

markets. 

- According to market sources the 2`s/10`s flatteners that were put on earlier

during the week are getting taken off.

- 10Y German Bund yield is -1bp at 0.405%, 2-5Ys is flatter, 5-30Ys is steeper.