EGB curves are bearish steepening at....>

EGB SUMMARY: EGB curves are bearish steepening at the open of trading on Friday.

The German 10Y yield is 2.3bp higher at 0.418%. The weakness is as much due to

the lack of calamitous news as anything that would create a risk-on movement.

- The Hang Seng index is +1.0% and equity index futures for European and US are

firmly in positive territory.

- European leaders continue discussions today but it appears that the meeting

with PM May at least created a positive environment. 

- Peripheral markets are outperforming this morning. The Bund-BTP spread is

1.8bp narrower, reaching its lowest level for a month. The Bund-Bonos spread is

1bp lower. El Confidencial newspaper says that Rajoy and PSOE have agreed to

hold Catalonia elections within 3 months.

- This evening Moody's can update its Austrian, German and Spanish ratings.

Fitch could update Italy and DBRS could update Portugal and Slovakia. Data is

limited and so most attention will be on the EU Leaders Summit