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

EGBS: Core/Semi-core EGBs opening modestly higher supported by risk-off

sentiment as US threatens further tariffs on China goods and China vows to

retaliate. German 10-yr Bund yield is 2.3bp lower at 0.295% according to

Tradeweb, with yield curve slightly flatter as 2-yr yield falls 1.3bps.

- The US administration produced an additional list of China goods worth $200bln

which they might put 10% tariffs on, while China has said that it would impose

countermeasures against the US if they go ahead with the threat.

- EMU periphery are holding up well so far Wednesday, with 10-yr BTPs 0.2bp

lower at 2.67% and 10-yr Spain 0.9bp lower at 1.27%.

- There is a dearth of European or UK data today, however there are a number of

central bank speakers scheduled to speak throughout Wednesday. France's Villeroy

has already said that the earliest the ECB could raise rates was through summer

of 2019, depending on inflation outlook while ECB Draghi, Praet, Mersch and Nouy

are all due to participate in the 9th ECB statistics conference in Frankfurt.

- Germany launches a new 10-yr Bund this morning, while Portugal taps 10-yr and

15-yr PGBs