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

EGB SUMMARY
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. 

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