EGBs are trading modestly higher with the......>

EGBS: EGBs are trading modestly higher with the exception of Italy which is

seeing some concession being built up ahead of 5-yr and 10-yr BTP supply,

following its relative outperformance in last couple of weeks. German 10-yr

yield is 1.8bp lower at 0.575% while curve is slightly flatter once again as

2-yr sector remains anchored.

- Italy taps its 5-yr and 10-yr BTPS for up E5.75bln and launches a new 7-yr

CCTeu for up to E3.5bln. 10-yr Bund/BTP spread has widened by 2.5bp to 117.9bps

this morning as markets build in concessions following decent outperformance in

last couple of weeks which has seen the spread tighten from 132.8bps.

- French preliminary Q1 GDP came in softer than expected at +0.3% q/q, while

flash HICP for April remained steady from March at 1.6% y/y. German import

prices remained flat on the month. Still to come this morning is Eurozone

consumer confidence at 1000BST.

- There is a host of ECB speakers scheduled throughout the day as Ecofin meeting

gets underway in Sofia.