The European debt markets started in....>

EGB SUMMARY: The European debt markets started in quiet fashion with some small

gains but have slipped lower in early trades, led by the very long end of the

yield curve.

- There was a E100mln+ payer of 25Y EUR swaps at 07:54GMT, which was equivalent

to at least 181k DV01 and once this was identified by the market, it appeared to

shake the long end of the curve. Additionally, smaller 5-10Y steepener trades

have shown up. Bunds have since recovered.

- The Powell testimony has been published and presented little in the way of

surprises. Most of the market commentary we have received believes that he will

emphasise continuity but that even this might sound hawkish. 

- There is no Eurozone supply today but a Stg400mln 43Y Gilt being sold this

morning and Greece closes its exchange auction at 1600GMT today.

- The data calendar sees Eurozone M3. This has shown a gradual grind higher in

lending to the private sector, although M3 has been static at around 5% for the

past 3 years. 

- Irish politics potentially features a collapse of government today.