The Dec-17 10Y Bund contract opened.....>

EGB SUMMARY: The Dec-17 10Y Bund contract opened 10 ticks lower this morning

with not much in the way of volumes. There was a large Dec/Mar Schatz calendar

roll blocked at 12.5, which sources suggest could have been sold. The German

yield curve is steeper as the longer end of the German curve is underperforming

the most. The 10Y Bund yield is trading 1.1bp higher at 0.384%. 

- The Italian bonds are mixed with yield curve bull flattening. The Bund-BTP

spread is 1.8bp tighter at 141.2bp.

- The Spanish curve is also mixed with the shorter end of the curve

underperforming. The Bund-Bonos spread 0.8bp tighter at 109.2bp.

- It is an eventful day today both in terms of economic news and on the supply

front. German manufacturing PMI is due to be released at 0855GMT and German

unemployment change at 0900GMT. On the supply side France is set to sell

E7.5-8.5bln long date OATs and Spain sells E3.5-4.5bln of SPGBs and

E0.25-0.75bln of SPGBei. Markets also await the BoE interest rate decision and

President Trump`s nomination for Fed Chair.