The price action for the Dec-17 10Y.....>

EGB SUMMARY: The price action for the Dec-17 10Y Bund contract was sideways in

the afternoon unaffected by climb in MNI Chicago Business Barometer. The

longer-end of the EGBs have outperformed the shorter-end with the 30Y Spanish,

Italian and German bonds putting on the best performance from the group likely

supported by soft Eurozone CPI.

- The German 10Y Bund yield is almost unchanged from Monday`s close at 0.370%.  

- The former Catalan President Puigdemont spoke at a press conference in

Brussels where he said that he did not intend to seek asylum in Belgium.

However, the former Catalan leader is not planning to return to Spain until he

receives "guarantees" that he will receive a fair trial. The Bund-Bonos spread

hardly moved during the speech and proceeded to slightly tighten later in the

afternoon. It appears that markets are beginning to feel that the events in

Catalonia have begun to simmer down as this is the second day when the spread

has tightened. The spread is currently trading 2.2bp tighter at 110.6bp.

- Italy seems to get supported by earlier comments from ECB Visco that QE may be

reinforced if inflation target is not met.