The yield on the 10-year German Bund....>

EGB SUMMARY: The yield on the 10-year German Bund is lower on the day, currently

trading at 0.452% most likely on weak China Caixin Services PMI number.

- A large portion of the German t-bills auctioned today were retained and held

for secondary market operations, but the auction still came in fully covered.   

- The on-going political crisis in Spain over the Catalan referendum appears to

continues to have an impact on the 10-year Spanish government bond yield today,

which was trading -6.4bp lower at 1.646%. The Bund-Bonos spread is tighter and

is currently at 119.4bp.

- We saw some large BTP and Bund futures blocks going through the screen this

morning. Price action suggests that 2,643 contracts of IKZ7 were bought at

135.33 and 500 contracts of IKZ7 bought at 135.21. While there appears to be a

BTP-Bund spread with 2,612 IKZ7 bought at 135.42 vs selling 2,169 RXZ7 at

161.34.

- German Industrial Production numbers came out stronger than expected earlier

this morning. However, there was muted reaction from the markets.

- There is nothing new to be reported from ECB's Mersch speech this morning.