The German 10-year Bund yield is........>

EGB SUMMARY: The German 10-year Bund yield is slightly higher by +1.8bp on the

day and the Dec17 Bund contract is hovering above the technical support level

situated at 161.13 which is the Oct 10th low.

- The Catalan President Carles Puigdemont gave a suspended declaration of

independence yesterday. Spanish yields were lower across the curve today with

the Spanish curve flattening. The 10-year Bund-Bonos spread is tighert by 4.6bp

from yesterday's close.

- The Spanish PM Mariano Rajoy gave a brief press conference where he said he

will formally ask the Catalan government whether they had declared independence

or not. This had a muted reaction in the markets with only a slight rise in the

10-year Bund-Bonos spread.

- EGB Option flows were mainly probing the upside and taking advantage of very

contained implied volatility levels. 

- In a good auction Germany sold E3bln Obls. Portugal saw fairly average demand

at their 5 and 10Y auctions. There is no conclusion to the E5-7bln 7Y auction at

the time of writing.