The Euro and EGBs are dropping from.....>

EGB SUMMARY: The Euro and EGBs are dropping from the start of trading today as

the world's markets resume their risk-on feel. 

- The euro dropped below 1.20 and coincided with a dip in the Bund below the

161.50 level, the low from Jan 5 and a round number. This set off stops that

caused an acceleration lower to 161.40. Currently, the German curve is unchanged

in the 2Y at -0.604% and the 10Y is 1.1bp higher at 0.45%. 

- The DAX index is already 0.4% higher on the session.

- German CDU/CSU and SDP parties continue with Grand Coalition talks today and

there appears to be a more positive air and desire to reach some sort of

compromise.

- German factory orders data for Nov fell 0.4% on the month, short of the

unchanged expectation. However, an upward revision to October data from 0.5%M/M

to 0.7%M/M softened the blow.

- Today, sees the Eurozone Sentix investor confidence indicator and at 1000GMT,

the extremely useful Eurozone economic confidence indicator.

- There is no EGB supply today but syndications are an omni-present threat.