Core EGB yields have turned higher on...>

EGB SUMMARY: Core EGB yields have turned higher on the day alongside recovering

equities, as a bit of appetite returned to the EGB space Monday afternoon.

- The German curve has erased early gains, with some bear flattening seen. 2-Yr

yield is up 1.5bps at -0.644%, 5-Yr is up 1.5bps at -0.565%, 10-Yr is up 0.6bps

at -0.196%, and 30-Yr is down 1bps at 0.417%.

- No specific catalyst to the turnaround, but risk appetite creeping back into

equities (Eurostoxx up 0.4%) after heavy selling in previous days.

- Italian spreads tightening as we await a press conference from PM Conte at

1815 Rome time. 10-Yr BTP/ German spread 10.2bps tighter at 276.9bps,

outperforming Spain/Portugal/Greece spreads which are each 2-4bps narrower.

- Euribor futures are off best levels but the strip is is now inverted between

Jun19 and Dec20 for the first time.

- Current futures levels:

* Jun Bund futures (RX) steady at at 168.34 (L: 168.33 / H: 168.69)

* Jun BTP futures (IK) up 74 ticks at 130.82 (L: 129.26 / H: 131)

* Jun OAT futures (OA) up 7 ticks at 164.49 (L: 164.38 / H: 164.89)