The German 10Y Bund yield is lower by...>

EGB SUMMARY: The German 10Y Bund yield is lower by 0.8bp this morning and is

currently trading at 0.395%. The Dec-17 Bund contract is higher today with the

only significant price resistance appearing at the 162.99 level, which is the

100 day weighted moving average.

- The Catalan President Carles Puigdemont did not provide any clarity as

demanded by the Spanish PM Rajoy on if he had declared independence. Instead,

Puigdemont is pushing for talks between the Central Spanish government and the

Catalan Regional government. There is little change in the Bund-Bonos spread at

the moment with it trading at 120.6bp.

- The BTP-Bund spread is tighter by 2bp and is currently trading at 166.3bp,

with heavy buying in the 7-10Y area.

- In terms of upcoming data and speakers there is the NY Empire State

Manufacturing Index released at 1330BST and ECB's Lautenschlaeger speaking at

1900BST.

- Around mid-morning, we noted a large (at least 194k DV01) EUR 3-10Y swap

steepener trade being done.