Core EGBs have fallen sharply since.....>

EGB SUMMARY: Core EGBs have fallen sharply since mid-afternoon Monday on strong

U.S. data, with periphery spreads a little tighter.

- Jun 19 Bund future is down 69 ticks at 165.65, having traded without much

decisive direction until dropping nearly 50 ticks from 166.04 beginning at

1500BST/1600CET.

- That coincided with latest U.S. construction spending and ISM data beating

expectations, triggering a sharp sell-off in Tsys.

- The 2-Yr German yield is up 0.4bps at -0.598%, 5-Yr is up 3.1bps at -0.419%,

10-Yr is up 4.9bps at -0.021%, and 30-Yr is up 5.6bps at 0.63%.

- Periphery spreads are broadly tighter; 10-Yr Greek bonds leading the pack vs

Bunds, down 7.1bps at 373.5bps. Italy down 1.8bps, Portugal down 2.0bps, Spain

0.3bps wider.

- No real surprises in the ECB's annual report released this afternoon; Pres

Draghi pointing to need for continued stimulus, and VP de Guindos calling

'significant monetary policy accommodation...essential'.

- Tuesday sees Eurozone PPI and an appearance by ECB's Praet.