FRANKFURT (MNI) – The German federal government sold E3.68 billion in new 6-month bubills at a weighted average yield of 0.2905%, the Bundesbank announced Monday. The weighted average yield was higher than the 0.18% yield at the last 6-month auction September 12. The average price of today’s auction was 99.85898 and the highest accepted yield [...]

Chewed up through some offers at 103.85/90 to a high of  104.02, but offers  at 104.05/10  now proving decent. Hearing further up at 104.50

A custodial name and a US investment house are behind this drive higher through 0.9900. Resistance  ahead is at 0.9955 (Sep 28 high) and then  0.9986 (Sep 27 high), ahead of parity which holds a large AUD 200 mio expiry today.. We’re just off the recent day’s high of 0.9917

Hearing these guys are starting to  offer around the 1.5635/40 level after recent highs of 1.5644.  Offers remain behind towards 1.5650 with some buy stops above there. UPDATE: stops done with a move up to 1.5660, more offers are now sitting up at  1.5685/90 with bigger up at 1.5710/20

Result of currency bill becoming law would be a trade war, which would hinder recovery of world economy, and further hurt US jobs growth.  

Down from -15.4 in September, slightly worse than median forecast of -18.0 and lowest level since July 2009.

Lux govt to take a minority stake Qatari family group has  also bought KBC’s lux unit Dexia BIL deposits are “200%” safe Lux govt guarantees Euro 2.7 bln for Dexia

Evidence of contagion in Eurozone, despite measures to contain crisis Contagion may be more severe than currently thought Most effecient use of EFSF is in primary debt markets, for example Italy and Spain Less efficient use for EFSF would be in secondary markets or bank recapitalisation Crucial that EFSF provides support to bond issuance, for [...]

Way better than median forecast of +0.2%.  July’s data also revised up, to -0.3% from initial -0.7%.

ITALY DATA: August SA industrial output rose +4.3% m/m and +4.7% y/y in workday adjusted terms, up from -1.1% y/y in July. The m/m increase was the highest m/m gain since the series start in January 2000, and follows a m/m decline of 0.3% in July. –August unadjusted y/y output rose +4.7%, accelerating from -1.1% [...]

This news is also helping support the euro, EUR/USD up at 1.3535. Market taking it that Troika ready to hand over the next tranche. Sell orders seen clustered 1.3540/50, buy stops above there.

Giving euro bit of a lift, EUR/USD up at 1.3495. UPDATE:  Stops tripped above 1.3500 and we’re at 1.3517.   Talk of more stops through 1.3550 (which is the 21 dma)

–Adds Detail To Version Transmitted At 0516 GMT LONDON (MNI) – Speaking to Sky News at the weekend, Bank of England Monetary Policy Committee member Martin Weale said the Bank has scope for additional quantitative easing. Following the MPC’s decision at its October meeting to extend its current stock of QE by stg75 billion to [...]

36% against. I guess the remaining 19.2% just don’t give a shit UPDATE:  Slovakia’s ruling coalition leaders to start meeting on EFSF at 14:00 GMT Monday.

Some way stronger than Reuters’ median forecast of -1.0%. Manufacturing output +0.7%, stronger than forecast of +0.2%.

Talk is that there are “semi official” offers just ahead of 1.3500. By that I take it to mean the BIS. They were apparently buyers down around 1.3410 Friday morning,  so would be a nice bit of profit to take Buy stops said to be gathered  just above 1.3500. We’re at 1.3478 from session high 1.3489.

Unchanged from August. Services sentiment indicator falls to 96 in September from 97 in August. Bank of France keeps Q3 GDP forecast unchanged at +0.1% (3rd estimate)

GERMANY DATA: August sa trade surpl +E13.8bn; July rev +E10.6bn(+E10.2bn): Destatis – Germany August nsa trade surplus +E11.8bn; July rev +10.5bn (+E10.4bn) – Germany August nsa c/a surplus +E7.0bn; July rev +E7.8bn (+E7.5bn) – Please see MainWire for more information

DAX futures up 0.9%, CAC 40 futures up 1%.

Better than Reuters’ median forecast of 10.3 bln. Exports s.a up +3.5% m/m, imports unchanged m/m.