Due to the risk-off sentiment in........>

EGB SUMMARY: Due to the risk-off sentiment in Markets overnight, European

Government bonds have opened modestly higher with yield curves flattening. Even

surprise rise in German factory orders for October failed to dent rally in

Bunds. German 10-yr Bund yield is 1.6bp lower at 0.304%.

- German Bunds are leading the move higher as one would expect in a risk-off

environment, with 10-yr semi-core and periphery EGBs trading around 1bp wider vs

10-yr Bund.

- Eonia fixing only dropped by 0.5bp to -0.324% last night, despite use of the

marginal lending facility jumping to E704mln from E394mln. 

- Little further data from the Eurozone today, however comments from ECB Mersch

are expected at 1030GMT when he speaks at a conference in Frankfurt. While

Germany are due to re-open its 10-yr benchmark Bund for up to E2.0bln at the

same time. Markets will also be keeping an eye on Brexit negotiations as

political tension increases once again in the UK.

- German October manufacturing orders rose 0.5% m/m, well above MNI median

forecast for a drop of 0.6%, while September's was revised up to 1.2% from 1.0%.