MNI EXCLUSIVE: Ex-BoE MPC Member Saunders On Policy Impact Of Higher Gilt Yields

• MNI: CANADA AUG HOUSING STARTS -0.1% MOM TO 229K - CMHC

OATZ6 2,328 lots blocked at 112.15, looks like a buyer.

Wires report comments from a spox for the German gov't claiming that while Berlin is "open to discussing new partnership models between the EU and Canada", the term "associate member" needs to be "rethought". 

• During her annual State of the European Union address earlier today, European Commission President Ursula von der Leyen said that the Commission wants to "open the door for Canada to become the first associate member of the EU." However, some member states are reported to be cooler on the prospect than others (see EU: Commission Offers 'Associate Membership' To Canada, But Member States Wary).
• VdL's comments are reported to have caught national capitals off guard, with many in the position of attempting to balance what one diplomat quoted by Politico said were "only warm feelings for Ottawa", while protecting domestic industry and avoiding any blowback from the Trump administration in the US.