A largely risk on day has seen Bunds....>

EGB SUMMARY: A largely risk on day has seen Bunds move lower and peripheral

spreads tighten against a backdrop of equities moving higher.

- Most notable movement in the German curve has been bear steepening (2s10s and

2s/30s pushing multi-week/month highs).

- Most market participants are looking forward to the ECB meeting later this

week (Thursday) where an expansion of the PEPP is expected.

- It has been a fairly quiet day with PMIs not providing too much in the way of

surprises (although the Italian manufacturing PMI was better than expected).

** Latest levels:

* Jun Bund futures (RX) down 79 ticks at 171.67 (L: 171.47 / H: 172.42)

* Germany: The 2-Yr yield is up 1.2bps at -0.647%, 5-Yr is up 2.8bps at -0.616%,

10-Yr is up 5bps at -0.397%, and 30-Yr is up 8.2bps at 0.085%.

* Jun BTP futures (IK) up 57 ticks at 142.73 (L: 142.2 / H: 142.77)

* Italy / German 10-Yr spread 8.6bps tighter at 183.7bps

* Jun OAT futures (OA) down 72 ticks at 167.72 (L: 167.5 / H: 168.28)