Core EGBs are a bit weaker early........>

EGB SUMMARY: Core EGBs are a bit weaker early Tuesday, with Brexit headlines

stirring up price action in the early going.

- Bund futures dropped 30+ ticks after reports that Merkel had softened her

stance on the Irish backstop, but swift denial by German officials saw all

losses retraced.

- Jun Bund futures (RX) last down 6 ticks at 165.30 (L: 165.11 / H: 165.54).

2-Yr yield is up 1bps at -0.569%, 5-Yr is up 0.3bps at -0.404%, 10-Yr is up

0.1bps at 0.008%, and 30-Yr is down 0.1bps at 0.641%.

- The Jun 19 BTP future is up 13 ticks at 129.70, having traded as high as

129.95 earlier. 10-Yr cash spread vs Bunds down 1.5bps at 246.4bps.

- Portuguese 10-Yr yields continue to fall, hitting lowest levels in `at least

25 years` according to RTRS. Last down 0.1bps at 1.218%. 

- Greece outperforming (again), 10-Yr spread / Bunds down 2.1bps at 345.5bps.

- Not the strongest auctions this morning: German 2030 linker sale technically

uncovered; Austria 5-/10-Yr RAGB sale saw lower cover ratio than previous sale.

- Data flow is limited. EU Summit and ECB meeting Wednesday the main focus.