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

EGBS: Core/Semi-core EGBs have opened on the back foot Monday weighed by modest

risk on flow as market breath a small sigh of relief Italy's rating was affirmed

at BBB by Fitch but with the outlook downgraded to negative. German 10-yr Bund

yield is 1.5bp higher at 0.342% and is leading the rest of the yield curve

higher.

- Italy BTPs are currently the big winners so far this morning following the

Fitch announcement on Friday with 10-yr yield 5.3bp lower at 3.182%, while 2s

and 5s are circa 7bp lower.

- Manufacturing PMIs are the main focus today with Spain already posting a

higher than expected 53.0. Italy will releases theirs at 0745GMT with overall

Eurozone final mfg PMI at 0800GMT

- There are also some comments from ECB Mersch (at 0920GMT) and then Weidmann

(at 0515GMT) which could be interesting following summer break.

- Future calendar rolls are also well under way, with around 20% completed so

far according to MNI calculations.