The EGB market jumped at the open as....>

EGB SUMMARY: The EGB market jumped at the open as risky assets felt the heat of

the latest North Korea threat to detonate a nuclear weapon over the Pacific in

response to Trump's UN speech.

- The upward move in the Bund contract faded soon after the open as French

Markit PMI data easily beat the consensus and the 10Y Bund yield is now

unchanged on Friday at 0.455%. 

- German PMI data also came in mcuh hotter than expected and so expectations are

building that the ECB will announce the taper in October.

- Supply has been fairly intense in the past few days but nothing is expected

today, particularly given the rosh hashanah holiday. The coming week sees nearly

no net EGB supply according to MNI calculations. Additionally, the

Bloomberg-Barclays EGB index extends 0.06 years.

- There are a number of ECB speakers today. Coeure has spoken in Sarajevo but

said noting on monetary policy. Draghi speaks later this morning and Constancio

is in Frankfurt this afternoon.