EGBs are currently trading steady to....>

EGB SUMMARY: EGBs are currently trading steady to modestly ahead of NY session

trade having reversed earlier small bid as traders position themselves ahead to

key US payroll and average hourly earnings data. Volume has been very low

though.

- German 10-year yield is +0.2bp at 0.455%, while the 30-year part of the yield

curve is marginally underperforming at +0.6bps.

- Market sources reported large French/German spread trade going through futures

with 8,154 OATU7 @ 149.77 sold vs buying 6,470 RXU7 @ 163.41, which weighed on

semi-core and periphery bonds in the morning session.

- EMU periphery are trading mixed after long-end of Spain recovered from a weak

start. While there is a disparity between 2-year Italy and Spain yields though

with the former rising by 1bp while the latter is 1bp lower

- German June factoring orders came in higher than expected, rising 1% m/m.

There was little further Eurozone data, so attention is now turning firmly to

key US non-farm payroll data this afternoon, with risk seen to the upside to MNI

median forecast of +181k.