The 10Y Bund yield is currently.........>

EGB SUMMARY: The 10Y Bund yield is currently trading 2bp higher at 0.385% after

climbing rapidly this morning. It appears to have been initiated following

selling in US Treasury markets and later in the Gilt markets on the UK real

wages. Volumes leapt, and soon after block trades were evident in Gilts,

Treasuries and Bunds. 

- Later in the morning the Dec-17 Bund contract broke support at the 162.35

level (Oct 17 low) triggering stops. All this happened, at the same time as the

DAX index exploded higher.

- The Thursday deadline for the Catalan Regional Government to furnish

clarification on its independence referendum is weighing on the Spanish debt

markets. The 10Y Bund-Bonos spread is currently trading wider by 2.2bp at

120.3bp.

- The ECB President Draghi spoke but failed to discuss monetary policy. 

- Germany successfully auctioned E1bln of the 30-year Bund 1.25% Aug 2048.

- The Irish market performed strongly early in the session, helped by an IGB

E6.2bln redemption. We also heard of very heavy 5Y BTP screen buying early on.