There is a small drift lower in the.....>

EGB SUMMARY: There is a small drift lower in the Bund contract this morning as

risky assets have made a small comeback after the decent Facebook inspired

equity losses of yesterday.

- The Brexit transition agreement may also be weighing on Bund prices. Weakness

is across the board in EGB with even the peripheral markets feeling the

pressure.

- There was also a likely payer of EUR 4Y swaps at 0750GMT for at least E190mln,

which may have started or added to the soft EGB market. 

- The German Finanzagentur is selling E4bln of 2Y Schatz; bear in mind that the

past two Schatz auctions have been technically uncovered. Auction cut-off is

1030GMT. The Schatz 2Y yield is 1bp higher at -0.585%. The 10Y is 1.6bp higher

and coincidentally a positive 0.585% yield.

- Beyond the ZEW release at 1000GMT, Eurozone consumer confidence is released at

1500GMT. Note that Japan will be closed tomorrow.

- Investors are also closely monitoring ZEW data at 1000GMT to assess effects of

trade-war talk on confidence.