European yields are heading south, as the global sell off in equities continued in Europe. the DAX is down -more than 1%, the Italian MIB down -1.60%, as the EUR continues to rise against the Dollar. Risk aversion also hit Eurozone peripherals, which underperformed core bond markets. Gilts shrugged off an uptick in UK wages, while Bunds were unperturbed by a 10-year auction that was slightly undersubscribed. ECB’s Hansson repeated the official view that inflation is expected to reach target and that short term economic risks are tilted to the upside. Eurozone trade data meanwhile showed a widening of the surplus in Q3, thus confirming that net exports underpinned robust GDP growth that quarter.