The German curve was steeper in.........>

EGB SUMMARY: The German curve was steeper in London morning trading with the

longer end of the curve underperforming the most on the back of long end

European government supply. The yield on the 10Y Bund is 1.5bp higher at 0.388%.

- France sold E8.072bln 10-yr, 15-yr and 30-yr OATs with Spain selling E4.038bln

of 5-y, 10-yr and 25-yr Bonos and E0.585bln of 10-yr SPGBei.

- It was reported that Spanish prosecutors were to issue an arrest warrant for

former Catalan President Carles Puigdemont and that some of the members of the

ex Catalan leadership appeared in court in Madrid today. The Spanish curve is

trading flatter with the the Bund-Bonos spread 0.8bp tighter at 109.2bp.

- BTPs are trading higher except for the 2Y part of the curve in turn modestly

flattening the yield curve. The Bund-BTP spread is 1.7bp tighter at 141.3bp.   

- Eurozone Manufacturing PMI for Oct ticked lower to 58.5 vs flash 58.6. Markets

now await the BoE interest rate decision at 1200GMT and the announcement of the

next Fed Chair by President Trump in the US.

- In swaps there appeared to be a E100mln+ receiver of EUR 15Y swap at 1.262%

and a E80.3k DV01 3Y-4Y-5Y swap fly, paying the belly.