EGBs are trading a little stronger......>

EGB SUMMARY: EGBs are trading a little stronger across the board to open the

week, with the ECB decision and long-term issuance eyed.

- Bund Dec18 futures are up 7 ticks at 160.02. The German curve has bull

flattened slightly, with 2-Yr yields down 0.1bps at 0.554% and 10-Yrs down

0.7bps at 0.379%.

- Italian BTPs have rocketed higher, with yields collapsing across the curve

though in a bull steepening on further assurance from FinMin Tria over the

weekend that the govt recognises the need to keep the budget deficit in check. 

- The 2-Yr BTP yield is down 10.0bps at 0.823%, the lowest in a month, with

10-Yrs down 6.5bps at 2.968%.

- Only EMU data today is Banque de France August industry sentiment out earlier,

showing a slight pickup in the manufacturing climate from July but nothing

market-moving.

- Issuance is a key theme this week, with Germany, Italy, Netherlands, Portugal

and Ireland coming to market this week with expected issuance of E10.6bln.