Core and Semi-core EGBs are edging higher......>

EGBS: Core and Semi-core EGBs are edging higher with yield curves ever so

slightly flatter as long-end outperforms the short end, supported by in-line

German region of Saxony flash inflation and slightly weaker Spain flash HICP.

German 10-yr Bund yield is 0.6bp lower at 0.397%.

- The main story overnight was that 10-yr JGB yield hit 0.11% in the early part

of the Asian session, but did fade lower in the afternoon as the BoJ stepped in

offering to buy an unlimited amount of JGBs at 0.10%.

- Saxony flash inflation came in at 2.2% y/y in-line with MNI's survey for

pan-Germany. While Spain flash HICP came in at 2.2% y/y below consensus of 2.3%

y/y.

- EMU periphery bonds are coming under some early selling pressure with Italy

due to sell up to E7.5bln in 5-yr BTP, 10-yr BTP and 7-yr floater. 10-yr BTP

yield has risen by 2.6bp as markets price in concessions. 

- Looking ahead to the rest of the day Eurozone consumer confidence data is

released at 0900GMT and then pan-German flash inflation data at 1200GMT.