Bunds have moved slightly higher but....>

EGB SUMMARY: Bunds have moved slightly higher but have largely been trading in a

range through this morning's session following yesterday's volatility around the

ECB meeting.

- Peripheral spreads have been widening throughout the morning, retracing some

of the recent tightening moves seen ahead of the ECB meeting.

- Easing in September from the ECB is now looking very likely, but yesterday's

meeting provided little clarity in exactly what form it could take. However,

Draghi did stress how concerned he was surrounding inflation.

- There has been no top tier data this morning with German import prices softer

than expected, French PPI falling and mixed confidence data in Italy -

manufacturing confidence was worse than expected but consumer confidence better.

- As the week comes to a close, Bunds are likely to be more driven by US GDP

data than any European specific events.

- Bund futures are up 0.20 today at 174.21, BTP futures are down -0.67 at 139.31

and OAT futures are up 0.15 at 166.42.