The Bund contract opened almost.........>

EGB SUMMARY: The Bund contract opened almost unchanged on Tuesday and has yet to

deviate much from opening levels. Across the yield curve, German yields are

higher by around 0.5bp.

- There was a buyer of 2500 RXU7 161 put contracts early in the session and we

hear of some real money demand for the short end of the Spanish curve this

morning.

- Conditions are once again very thin and movements relative to Germany are

fairly small. 

- Overnight Treasury market trading showed a flat-lined contract. 

- Japanese securities investment data showed that Japanese investors increased

their overseas bond purchases to a net JPY4.46tln in July, well above recent

averages. Slightly older June country-specific data showed little buying of EU

bonds. They continued selling of Italy, turned sellers of Bunds but buyers of

small amounts of French debt. 

- Austria sells a very old 10Y and 30Y debt later this morning and that

EUR1.1bln sale will be the highlight in a very long, slow session.