There is little movement on Tuesday.....>

EGB SUMMARY: There is little movement on Tuesday morning in the EGB space but

the market is being bombarded by supply and prepping has begun. The 10Y Bund

yield is currently unchanged at 0.444%

- Spanish bonds are fairly quiet today with the 10Y spread to Germany 1.1bp

wider. Indeed, the Italian curve is slightly weaker with the Bund-BTP spread

1.6bp wider today.

- Today's supply comes from a Bundei 2026, a Finnish 5Y and joined by a 6Y EFSF

and a recently announced 30Y Slovakian deal. There are a lot of deals this week

but sizes are small and net of redemptions and coupons, supply is close to flat.

- The US market returns from yesterday's holiday and there is a days' lull

before the US equity earnings season gets underway. Given the elevated level of

equities, this period requires additional monitoring from a fixed income

perspective.

- This evening the President of Catalonia is due to make a speech to the Catalan

parliament.