EGB yields have traded lower during.....>

EGB SUMMARY: EGB yields have traded lower during the afternoon. Inflation data

for Spain, Italy and Germany has been mixed. With 57% of country-level data

available, we estimate that the June flash estimate for the Eurozone (published

tomorrow) will come in at 0.2% MoM and 2.0% YoY, in line with consensus.

- The benchmark German 2-year bund yield is trading at -0.674%, in the middle of

the day's range, while the 10-year has edged down to 0.312% from a session high

of 0.330%. The curve has flattened slightly during the day with the 2s10s spread

narrowing to 98.1bps from a high of 99.3bps.

- The French 2-year OAT yield has gradually edged lower during the session,

reaching -0.474% and near the lower end of the intraday range. The curve has

similarly flattened, with the 2s10s trading down to 114.9bps from a high of

116.3bps.

- Italian CPI data was a touch higher than expected, but yields have still

tracked lower. The 10-year BTP yield has pushed down to 2.780% near the lows of

the day.

- The EURIBOR futures strip has flattened with Greens/Blues up 0.5-1.5 ticks.