The 10Y German Bund yield opened........>

EGB SUMMARY: The 10Y German Bund yield opened marginally higher this morning and

is currently trading at 0.41%, a rise of 0.7bp.

- It appears that the rift between the Catalan regional government and the

Spanish government is beginning to worsen. In a letter to Spanish PM Rajoy the

Catalan President defended the region's claim to independence and did not

provide a clear answer to PM Rajoy's question of whether he had declared

independence or not. However, the impact upon the Bund-Bonos spread is almost

nil on Monday.

- The projections from the Austrian elections appears to point to a possible

alliance between Sebastian Kurz's, People's Party and the Far-Right Freedom

party. As a direct consequence of a Far-Right Party possibly entering

government, Austrian debt is the poorest performer in Europe, albeit only

widening by 0.3bp to the Germany 10Y today.

- The front end of Italy is seeing buyers in early trading, turning the sector

into the best performer.

- Later, Slovakia sells E100mln each of 0% Nov-23 and 1.375% Jan-27.