EGBs are off their morning lows but.....>

EGB SUMMARY: EGBs are off their morning lows but remain under pressure, as a

Bank of Japan meeting tonight is weighing on global long-end bond sentiment.

- Bunds have fared the worst today among EGBs, with the 10-Yr yield rising

3.1bps to 0.435% (albeit 1bps off the high), the weakest performance on the

curve which is bear steepening. 2-Yr yields are up 1.6bps, with 30s up 3.0bps.

- Pan-German flash HICP for July out at 1300BST, while 10-Yr Bund supply ahead

Wednesday (E3bln) possibly weighing on Bunds.

- The Euribor futures strip is moving in step, with longer-dated Blues hitting

six-week lows, off 2.5-3.0 ticks.

- Italian BTP spreads have moved in a wide range, rising since the BTP/CCTEu

auction a little after 1000BST where E7.5bln (top end of target range) was sold.

10-Yr spread vs Bunds went as high as 238.7bps this morning, dropping to

230.7bps, last 232.8bps (down 1.4bps on the day).

- BOJ decision, which could include tweaks to yield curve control hitting

long-dated JGBs and their global counterparts, due after 0300BST Tuesday.