After falling early, core EGBs have.....>

EGB SUMMARY: After falling early, core EGBs have traded without any clear

direction most of Tuesday, with issuance taking centre stage.

- Sep Bunds down 31 ticks at 173.2 (L: 173.04 / H: 173.46), with the German

curve fairly flat. Belly slightly outperforming: 2-Yr up 0.8bps at -0.735%, 5-Yr

up 0.3bps at -0.623%, 10-Yr up 0.9bps at -0.357%, 30-Yr up 1.2bps at 0.25%.

- OAT futures down a similar amount (31 ticks).

- Periphery spreads broadly tighter (Italy, Spain, Portugal 2-5bps wider to

10-Yr Germany), contrasted by Greece off worst levels but nearly 10bps wider.

- ECB speakers not really moving the needle. Chief Econ Lane saying in Twitter

Q&A `if more easing is needed, we have the tools`, `substantial accommodation

still required`, `we do not see recession`.

- Alongside DSL and Bundei taps, we also saw E6bln in syndicated issues: EFSF

sold E2bln 10-Yr benchmark and a E1bln increase of the 1.75% Jul-53, while Italy

tapped 50-year 2.80% Mar-67 BTP for E3bln.

- The beat goes on Wednesday: Germany sells new 10-Yr Bund; Portugal sells PGBs.

- Weds sees EZ industrial production data, but most attn on US Fed`s Powell.