EGBs are coming under some light selling.......>

EGBS: EGBs are coming under some light selling pressure at start of Thursday's

trade, taking cue from fall in US Tsys overnight and weighed by Spain and French

bond supply. German 10-yr yield is 0.7bp higher at 0.349% with 2s/10s spread

1.1bp steeper.

- EMU periphery are fairing slightly better than core EGBs though with 10-yr

Bund/BTP spread 2.3bp tighter as summer carry trade resumes. Markets are

expected to remain quiet in thin volumes with little Eurozone data or official

speakers scheduled for today. The G20 Finance ministers meeting gets under way

in Buenos Aires later today.

- Bond supply from France and Spain is the main event today with the French

Tresor tapping two OATS - 0.00% Feb-21 and 0.00% Mar-24 and three linkers: the

0.10% Mar-25 OATi, 0.70% Jul-30 OATei, and 0.10% Jul-47 OATei. While Spain

re-opens 0.35% Jul-23 Bono, 5.90% Jul-26 Obli, 1.40% Jul-28 Obli, and 2.35%

Jul-33 Obli

- Euribor strip is steady to 1 tick lower with blues underperforming reds