The Bund contract is being pushed.......>

EGB SUMMARY: The Bund contract is being pushed around but without much in the

way of justification as markets struggle with poor liquidity. The front end of

Germany is strong and assisted by a E13bln Schatz redemption today. Currently,

the 10Y yield is 1.4bp lower at 0.302%.

- Portuguese debt has been extremely strong at, at one point, the 10Y PGB yield

was below the BTP equivalent. Later this evening, Fitch will update its

Portuguese rating.

- Italy sold the maximum E2bln of the BTP 2039 in its exchange auction today.

- Greek spreads to Germany are another 6bp tighter today. 

- Reuters is reporting that German SDP leader, Schulz is recommending that his

party begin exploratory talks with the Conservatives.

- Donald Tusk also communicated that EU Leaders approved the second phase of

Brexit negotiations.

- The latest Catalan election survey published in El Mundo suggests that

separatists might lose their majority in the 21 Dec elections.