EGB markets have opened with a..........>

EGB OPTIONS: EGB markets have opened with a risk-off tone taking cue from

overnight rally in US Treasuries on renewed risk to global trade. Core/Semi-core

are trading higher, curve flatter. German 10-yr Bund yield is 2.4bp lower at

0.313% and 2s/30s spread 2bp tighter at 175.6bps.

- An inconclusive emergency EU immigration meeting is also seen underpinning the

risk-off tone in markets and weighing on EMU periphery bonds. 10-yr Bund/TP

spread is leading the underperformance at 7.5bp wider at 243.2bps.

- US Treasuries squeezed higher overnight following an FT article that according

to officials and people briefed on the discussions, the US administration has

decided to restrict China's ability to invest in or acquire US companies in the

industries identified by Beijing in its so-called Made in China 2025 plan, which

further raises the prospect of a trade war.

- European data is limited to German IFO at 0900BST with consensus look for a

slight fall in consensus, although there is some risk to the upside following

better than expected German flash service PMI last week.