The German 10-year yield is down 1bp....>

EGB SUMMARY: The German 10-year yield is down 1bp on the day and is currently

trading at 0.446%. The Bund yields were also pulled lower by a rally in French

bonds after the French auction results. 

- There was considerable demand for Spanish bonds at today's auction with the

bid to cover ratio for the new 5Y coming in at a healthy looking 2.12x. Given

the Catalan issue, there was a lot of fear leading into the auction. This has

led to a flattening of the Spanish yield curve across all maturities with the

10-year leading the way.

- Tensions were still visible between the Catalan and the central Spanish

government as Spanish Economy Minister Luis de Guindos rejected the idea of

talks with Catalan leaders.

- Other peripheral market yields were dragged lower by the demand for Spanish

bonds with the Italian 10-year bond yield dropping to 2.162%.

- Brent prices reached an intra-day highs of $56.39 per barrel after Russian

President Putin met with Saudi King Salman and said that he was open to the idea

of reducing supplies for a longer period of time.