EGBs are trading mixed in a slow........>

EGB SUMMARY: EGBs are trading mixed in a slow start to Tuesday trading with key

risk events seen ahead that includes US President Trumps decision on Iran

nuclear deal and comments from ECB Praet. German 10-yr Bund yield is 0.535%,

little changed from Monday's close.

- EMU periphery have opened modestly lower, weighed by continued uncertainty in

Italian politics were the risk of early elections have increased as both of the

the largest parties have rejected last attempts to form a governing agreement.

10-yr Bund/BTP sp[read is 4bp wider at 126.8bps.

- Greece is bucking the trend though and is 2bp tighter at 358bps following a

2-notch rating upgrade from DBRS late Friday. "The Positive trend reflects

expectations in coming months of potentially credit-positive outcomes with

respect to an exit from the Third Programme and negotiations over debt relief",

says DBRS.

- German data this morning came pretty much in-line with Industrial production

rising 1% in March. Little further data from Eurozone today.

- Euribor strip has opened steady to 1 tick lower but volume is very low.