Well above average volumes in Bund

Most of the action has clearly been noted in the Bund contract.

• The German 10 year is having an impressive session, albeit in a fairly tight range, having traded over 400k lots in just over 3 hours, so well above averages.
• Desk report that Buba involvement may have been the main factor, to explain the volume.
• Month end is a non factor, given the tiny extensions expected for this month at +0.02yr.
• Peripheral spreads have been mixed with Italy trading at one end, 1.1bps wider, while Greece trades 1.7bps tighter.
• Gilt curve is on the margin bear steeper, but the 10yr has traded in line with EGBs, with the contract sitting 13 ticks lower.
• Focus for the UK today, will be BOE Governor Bailey due to speak at Jackson Hole.
• US Treasuries have recovered some of their overnight losses, following better equity selling since the EU cash Equity open, but indices have since paired some of their losses at the time of typing.
• Looking towards the afternoon, Jackson Hole remains in focus, while on the data front, we get Canadian GDP, US personal income/spending and the MNI Chicago Business Barometer