The calm after the storm. -EGB's........>

EGB SUMMARY: The calm after the storm.

-EGB's followed on from yesterday afternoon price action in early trading.

-Prices across Asset decoupled yesterday afternoon with Bund down some 50 ticks

and Tnotes up 12.

-This morning on the open saw a one way upside lift in Bund, with very little of

note to explain the big rally back above 174.00

-Worth noting that as we go into October, EU160bn of back flow is expected from

Coupon and Redemption, which give an argument for lower, longer yields.

-Bund printed a 174.45 high and faded going into French & Spanish supplies.

-Peripherals are once again flat to 1bps tighter against the German 10yr.

-Markets are now calmer with attention turning to Boris Johnson at

11.30BST/06.30ET.

-Also, plenty of important US data as well as plenty of speakers for the London

session.

- Bund futures are up 0.55 today at 174.34 with BTP futures up 0.48 at 145.38

and OAT futures up 0.56 at 170.29.