EGBs are pretty much ignoring the overnight....>

EGBS: EGBs are pretty much ignoring the overnight news that the Trump

administration won't impose tariffs on Chinese products for now, after the two

nations made progress on trade issues during two days of talks, as Italian

political news dominates once again. German 10-yr Bund yield is 2bp lower at

0.559%.

- Italy's Five Star Movement and League reached an agreement on their nominee to

be the country's next prime minister which is expected to be announced Monday.

Salvini said that neither he nor Di Maio would take the role of premier.

However, media reports said Salvini would lead the interior ministry and Di Maio

would become either labour or economic development minister.

- Italian BTPs have come under some heavy selling pressure this morning which

has also dragged Spain and Portugal with it was well. 10-yr Bund/BTP is 7.6bp

wider at 172.6bps. 

- A number of European countries are observing Whit Monday holiday today so

markets likely to remain thin and choppy.

- Euribor futures are steady to higher, curve flatter as blues outperform