There is little excitement in bond......>

EGB SUMMARY: There is little excitement in bond markets in early trade on

Monday. The Bund contract opened little changed compared to Friday and has

achieved only small gains since the open. 

- Italian debt has continued its recent outperformance today, albeit in a modest

way and is 0.3bp tighter to Germany in this 10Y sector, not bad considering the

sale of 3, 7 and 15Y BTPs and the start of the BTP Italia this week (13th to

16th November). 

- Spanish debt is doing better still, no doubt helped by a WSJ article that has

pained the Calatan issue as something drifting into the background.

- There  is a very large supply calendar and we estimate it will be the third

largest nominal amount sold for the entire of 2017.

- This week, the biggest data release is easily US CPI on Wednesday. Core

inflation has recently strongly surprised to the downside.

- Today, sees a E22bln redemption in the BTPs market (matured yday but pays cash

today.

- The German 10Y yield is down 1.2bp to 0.398% and the 2Y is little changed.