The 10Y Bund yield went into the........>

EGB SUMMARY: The 10Y Bund yield went into the close of European trading with 10Y

around 2.5bp higher than the previous day's close. Global bonds were gradually

crushed by a decent collection of economic data.

- From Europe, Eurozone economic confidence (one of the better survey measures)

rose to a 10 year high. German CPI rose 0.2%M/M, above the 0.1% consensus. In

the US, ADP data smashed consensus with a 237k rise and finally US Q2 GDP was

revised higher to 3.0% because of strong consumption.

- There was decent supply from Europe with a poorly received Italian auction

that quickly led to around 2-3bp of 10Y Bund-BTP widening. By close of play,

much of this weakness had been reversed.

- The new Finnish 10Y attracted E10.7bln of orders and priced with a total of

E3bln. 

- Finally, Portugal undertook an exchange auction and perhaps helped the

Portuguese market to outperform all others in Europe on Wednesday. 

- Month-end extensions are tomorrow, with the Bloomberg-Barclays Pan Europe

aggregate index rising a modest 0.04 years.