The Dec-17 Bund future started the......>

EGB SUMMARY: The Dec-17 Bund future started the London session unchanged at

161.11, but then ticked slightly higher on low volume trading. The 10Y yield is

currently trading 1.0bp lower at 0.466%.

- All eyes are on the ECB to see by what amount they cut their bond-buying

programme. The consensus is a E30bln cut for nine months and left open ended,

should the need arise.

- There is another strong bid in the 5-10Y part of the Spanish and Italian

curves again although the volumes going though the BTP and Bonos futures markets

are modest.

- Today, has one of the largest coupon and redemption payments of the year with

nearly E50bln of cash hitting the market today and likely behind the slightly

stronger prices of all EGBs.

- Also today, Germany will come into the market and sell E3bln of the 10Y

benchmark 0.5% Aug-27 Bunds. MNI sees good chances of a well bid auction later

today that the auction will be largely successful.