Core/Semi-core EGBs have opened modestly.......>

EGBS: Core/Semi-core EGBs have opened modestly higher apart from the short-end

which remains anchored as markets digest last nights FOMC monetary policy

statement and the continued volatility in 10-yr JGBs. German 10-yr yield is

0.1bp lower at 0.477%.

- FOMC made a couple of changes to its statement saying that pace of growth was

"strong" from "solid" and that household spending had "picked up" versus "grown

strongly", which gave the meeting a slightly hawkish tint.

- While in Asian there was more volatility in 10-yr JGBs with yield rising to

high of 0.142% on back of a smaller Rinban before recovering to 0.119%.

- Closer to home EMU periphery bonds have come under some early selling pressure

as Italy's Tria is set to hold meeting on its Budget with Salvini and Maio

today, according to reports in Il Sole 24 Ore.

- Little data from the Eurozone today, however, there are Spain and French bond

supply today, before attention turns to key BoE monetary policy decision.