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Core/Semi-core EGBs opening higher curves......>

EGBS
EGBS: Core/Semi-core EGBs opening higher curves flatter taking cue from rise in
US Treasuries overnight following escalation in US/China trade spat. German
10-yr Bund yield last 4.5bp lower at 0.353% and 2s/10s yield spread is 2.8bp
tighter at 98.2bps.
- EMU periphery have opened on the back-foot weighed by the risk-off sentiment,
while newswire reports that Italy may take another year to balance the budget
also seen weighing. 10-yr Bund/BTP spread is 8.2bp wider at 223.7bps while Spain
and Portugal are circa 4bp wider.
- US President Trump ordered the US Trade Rep to identify an additional $200bln
in Chinese goods for tariffs at a rate of 10%, this is a larger nominal amount
than had been expected.
- China said it would fight back firmly with "qualitative" & "quantitative"
measures if the United States publishes an additional list of tariffs on Chinese
goods.
- Little data from either the Eurozone or UK today but ECB forum in Sintra
continues, with a number of central bankers scheduled to speak.

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