The Bund 10-year yield recovered........>

EGB SUMMARY: The Bund 10-year yield recovered approximately 3bp from the session

lows of 0.415%. However, it was lower on the day owing to the uncertainty

surrounding the Catalonian referendum in Spain and a slight risk-off sentiment.

The German curve is flatter with 10-year Bund 1.8bp lower at 0.445%.

- The US ISM Non-Manufacturing PMI for September came in higher than expected at

59.8 helping push the Bund 10-year yield higher.

- The Catalonian leader is due to speak at 20:00 BST with Catalan's regional

parliament considering declaring independence from Spain on Monday. This

announcement sent the Bund-Bonos 10-year spread to its widest level at 136.2bp

for the day before fading the move by about 5bp. 

- The Irish NTA completed E4bln syndicated deal allowing Ireland to pay back

some of its IMF loans. The Bund-IGB spread has tightened 0.5bp on the day.

- Meanwhile, there was decent demand for Germany's 10-year Bund auction.

- We await for ECB president Mario Draghi and and Fed chair Janet Yellen to

speak later in the day.