Core EGBs have weakened and.............>

EGB SUMMARY: Core EGBs have weakened and peripheries have strengthened amid

modest relief over global trade tensions compared with Friday, though with the

caveat that trading volumes have been thin so far.

- Bunds remain near the lows of the day, weighed down by positive German data

this morning (including bullish Sentix investor confidence and export figures),

with the Sep8 future off 36 ticks at 162.46, 6 ticks above the low.

- Periphery EGBs have benefited from the risk-on tone, with Greek and Italian

10-year spreads over Germany narrowing by around 6bps and 8bps respectively. BTP

2s10s slightly steeper (up 2.4bps at 190.7bps) following Friday's flattening, as

2s have outperformed.

- Euribor futures are off slightly, with Blue contracts off 1.0-1.5 ticks.

Whites and Reds are largely unchanged.

- ECB President Draghi set to speak at the European Parliament at 1300GMT,

though market-moving statements unlikely as it is in his capacity as ESRB Chair.

- Supply could weigh on EGBs this week, with issuance picking up (Germany and

the Netherlands kick things off Tuesday) and no coupon or redemption payments.