The German 10Y Bund yield was pushed....>

EGB SUMMARY: The German 10Y Bund yield was pushed lower this morning and is

trading at -2.3bp. Almost all yield curves across the EGB markets are flatter

this morning. The initial upward morning price action in the Bund Dec-17

contract was cash led, which triggered stop-losses elevating prices further. The

contract is trading near its intraday highs of 161.90.

- Once the initial upward move in the Bund had occurred price action ran into

selling with some talk of flattener trade unwinds in the cash market in Germany

between 2Y and 10Y. 

- The swings in the Gilt market were then responsible for some EGB yield

movements. Brexit transition period talk created decent price swings but little

net direction.

- Activity in the peripheral EGB markets was side-lined. Italian and Spanish

spreads to Germany were little changed in the morning session.

- In terms of data, the market awaits the extremely important US CPI data at

1330BST.