Core/Semi-core EGBs have opened on the back....>

EGBS: Core/Semi-core EGBs have opened on the back foot, weighed by mild risk-on

sentiment as there was muted reaction to FOMC minutes and following no

escalation in US/China trade dispute despite US confirming $34bln in China

tariffs and a further $16bln in a couple of weeks.

- Sharp rise in German industrial production for May and agreement between the

German coalition parties on migration are also seen weighing. German 10-yr yield

is 0.3bp higher at 0.302% with curve modestly steeper as short-end remains

anchored. 

- EMU periphery are faring slightly better than core/semi-core EGBs with 10-yr

Bund/BTP spread 1.3bp tighter at 241.8bps. 2-yr BTPs though remain under

pressure and once again the curve is flattening.

-  Euribor strip is 0. 5to 1 ticks lower, however volume has been very light so

far.

- Little further data from the Eurozone today so attention likely to be turning

to key US labor data this afternoon.