After a weak open, EGBs fell on the.....>

EGB SUMMARY: After a weak open, EGBs fell on the release of Saxony CPI which

came in four tenths higher for the Y/Y measure in June than May. After Bund

support held, we have seen some retracement, helped by smaller increases in

other German state CPIs. Elsewhere, Spanish CPI was slightly disappointing while

confidence data from Italy and the Eurozone also disappointed.

- The only supply today was from Italy where there was decent demand which

helped BTPs outperform.

- The focus is on the national German inflation print at 13:00BST but politics

will be closely watched with the G20 meeting beginning tomorrow and leaders

already arriving in Osaka today.

- Bund futures are down -0.14 today at 172.36 with 10y Bund yields up 0.1bp at

-0.303% and Schatz yields down -0.1bp at -0.737%.

- BTP futures are up 0.17 today at 133.82 with 10y yields down -1.2bp at 2.128%

and 2y yields down -2.2bp at 0.245%.

- OAT futures are down -0.11 today at 164.52 with 10y yields up 0.2bp at 0.020%

and 2y yields down -0.2bp at -0.669%.