Core/Semi-Core EGBs are trading........>

BOND SUMMARY: Core/Semi-Core EGBs are trading mixed but little changed with

little seen to direct markets so far this morning as key event risks lay further

ahead that includes US President Trumps decision on Iran nuclear deal. German

10-yr yield is currently at 0.533% unchanged from Monday's close. 

- Most action has been seen in Italy where there has been consistent selling

since the get-go as political concerns rise sharply as chance of fresh round of

elections increase as both of the the largest parties have rejected latest

attempts to form a temporary government. 10-yr Bund/BTP spread is 8.5bp wider at

131.2bps. The poor performance in Italy is dragging Spain and Portugal 2.3bp and

3.9bp wider respectively.

- US Tsy have gained a bid in mid-corning European trading, bouncing off lows

with 10-yr yield now at 2.9441%, down 0.5bp. Curve is slightly flatter as 30-yr

is 1bp lower at 3.1115%. Little outright flow seen though

- JGB future has also bounced off from Asian session lows and are now 3 ticks

higher at 150.87. The 10-Yr JGB auction passed smoothly, with the low price

slightly higher than expected but the tail narrowed.