- The 10Y German Bund yield is..........>

EGB SUMMARY: - The 10Y German Bund yield is currently trading 3.1bp lower at

0.372%. Around lunchtime there were two Bund future buying blocks that went

through. This could possibly explain why prices spiked to session highs of

162.40. 

- Initially today, Spain's Deputy PM Soraya Saenz said that Catalan leader

Carles Puigdemont had until Thursday to furnish clarification on whether he had

declared independence or not. Later in the day Reuters reported that "Catalonia

was not planning to respond to the governments demands by this Thursday."

Despite these negative headlines the 10Y Bund-Bonos spread remains relatively

unchanged and currently trading at 120bp.

- The 10Y Bund-BTP spread is trading 2bp tighter today at 166bp. There was also

speculation today that Italy could be possibly heading to the polls as early as

March 2018, once the Senate passes the Rosatellum, which may come within days.

The BTP buying was initially at the front end of the Italian curve but it spread

as the day progressed. 

- Worth noting is strong Yankee issuance by well-rated European names on Monday.