The European debt markets are...........>

EGB SUMMARY: The European debt markets are squeaking higher in fairly low

volumes today. The buying began at the start of European trading as the market

was picking itself off from a late drop in US trading.

- The Bund yield is 1bp lower at 0.403% but the peripheral markets are

performing stronger still. Late Friday's Fitch Ratings upgrade to the Greek

rating has bestowed little benefit to GGBs but Portuguese yields are 4bp lower

at 10Y today. Italian and Spanish paper is also strong.

- There was some chatter about the WSJ article that claimed that Draghi would

announce the end of QE at Jackson Hole. However, the market has yet to really

react to the report, which contained no fresh source.

- There appears to have been some 2-4Y flattener trades in the EUR swap curve

this morning and the belly of the swap curve is performing well compared to

German and other semi-core paper.

- There has been no important data and the US calendar is empty enough that the

solar eclipse can be watched at leisure.