- The Bund contract sold off a little...>

EGB SUMMARY: - The Bund contract sold off a little today, responding to weakness

of USTs in the afternoon as US players sold Tsys in anticipation of the speech

from Janet Yellen later in the day.

- The German yield curve bear steepened with the 10Y leading via a 1.3bp rise to

0.413% as the close approached.

- Greek debt was under pressure today with yields climbing 7.3bp. The move was

attributed to talk that the German Finance Ministry might be given to the FDP

Party. In turn, this implies a push-back against enhancing European mutual

support mechanisms -- something that Greece relies upon heavily.

- French President, Macron made a keynote speech that laid out his vision of

Europe. It was an attempt to bull-doze through the French vision before the

complications of German politics got in the way.

- There was also attention upon the CDU - CSU link in Germany as the latter

talks of not entering into coalition. It is not new for tension between these

Parties but it would make German politics very messy indeed.

- Auctions went well in Italy and very well for the 2Y German Schatz.