The Dec-17 Bund future opened 15........>

EGB SUMMARY: The Dec-17 Bund future opened 15 ticks higher at 161.76 ticks in

morning London trading, but the gains were short lived as the contract pared

gains. The move higher on the Bunds appears to a continuation from yesterday on

the back of dovish comments from ECB President Draghi yesterday. In terms of

potential areas of support and resistance in the Bunds for the day next support

is near 161.35 and potential resistance is sitting at 162.04.     

- The Catalan President Puigdemont`s refusal to hold fresh regional elections

yesterday could lead the Spanish Senate to trigger Article 155. This would mean

that Spanish Government would seize control of the Catalan region as they would

impose direct rule. With regards to the impact on the bond markets the

Bund-Bonos spread has tightened marginally by 0.2bp and is currently trading at

111.9

- In terms of data, there is not much until the US markets open with the US GDP

for Q3 due to come out at 1330BST today.