There were large swings in the German...>

EGB SUMMARY: There were large swings in the German Bund markets with an initial

increase in the price of the 10-year Bund contract. This was led higher by a

4364 contract trade on the TY that set of some stop-losses in the Bund.

- Later in the morning we saw a reversal of the gains made earlier in the Bunds

possibly led by the UK Gilt markets with traders possibly positioning themselves

for the press conference on Brexit talks. Market participants noted that very

little volume was seen in the European fixed income markets.

- The Italian curve outperformed this morning, helped by a strong auction and

the passage of three parliamentary ballots on the voting reforms, joined by the

fourth and final vote in the past few minutes. The middle part of the curve

appears to be performing best with the 7-year BTP down -2.2bp.

- Spanish debt started the trading session well but struggled as the morning

wore on.