Core EGBs are a little stronger, with...>

EGB SUMMARY: Core EGBs are a little stronger, with the escalating US-China trade

dispute dampening risk appetite.

- Dec18 Bund future is up 12 ticks at 159.14, with the curve bull flattening

(10-Yr yield down 0.7bps at 0.4514%, vs 2-Yr down 0.3bps at -0.5316%.

- Schatz supply today with Germany re-opening Sep-20 for E4.0bln.

- Periphery spreads are a little wider, with 10-Yr Italy out 3.3bps vs Bunds at

242.1bps, Spain out 1.0bps at 103.9bps, Portugal out 1.4bps at 138.7bps and

Greece out 2.8bps at 360.4bps.

- Italian BTPs a little weaker, on reports that Deputy PM Di Maio clashed with

Fin Min Tria on Monday evening, threatening to fire him. 

- The Euribor futures strip is flat out to Jun21, after which contracts are up

0.5-1.0 ticks.

- Data and speakers today: ECB President Mario Draghi speaking in Paris (began

0715GMT) and is followed by ECB Supervisory Board Chair Daniele Nouy at 0730GMT.

- Next up, at 0800GMT is industrial orders from Italy for July. The m/m and y/y

growth rates for June were 3.6% and 4.9% respectively.