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The Dec-17 Bund contract opened 12......>

EGB SUMMARY
EGB SUMMARY: The Dec-17 Bund contract opened 12 ticks higher this morning, but
gave up the gains shortly after the open and is currently trading at 162.35. the
closest area of technical support is visible 162.23, which is the hourly
resistance of Oct 27 now turned into support. Looking above the current level
technical resistance is visible at 162.48, which was the Oct 27 high.
- In Spain, tensions in Catalonia have fallen as over the weekend there were
thousands of pro-unity supporters who marched in the streets of Barcelona in
support of of a unified Spain. While PM Rajoy continues to have full support of
parliament and has called for Catalonia regional elections on Dec 23rd The 10Y
Bund-Bonos spread is tighter by 6.5bp this morning and is currently trading at
113.7bp.
- The Bund-BTP spread is tighter this  morning by 4.8bp and is currently trading
at 151.7bp on the back of ratings upgrade by S&P on Friday quoting a better
economic outlook.
- In terms of recently released economic data the German Saxony flash CPI was
1.8% Y/Y vs MNI pan German median of 1.7% Y/Y.

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