EGBs are trading steady to lower at start of...>

EGBS: EGBs are trading steady to lower at start of Monday's trade with little

direction seen overnight, parring opening gains, as ECB Villeroy talks about end

of QE in either Sep or Dec and sees current slowdown in inflation as temporary.

German 10-yr Bund yield is 2.1bp higher at 0.551%.

- Villeroy was also quoted as saying that the European central bank is likely to

give additional guidance on the timing of first interest rate hike.

- Unions and employers in Germany's construction sector on Saturday agreed on

the steepest wage increase negotiated so far this year. The agreement, which

covers over 800,000 workers, will ensure pay packets in West Germany increase

5.7% and those in East Germany increase 6.6%

- BTPs are taking the news that an Italian government is close to being formed

by the populist parties in their stride with 10-yr Bund/BTP spread 0.9bp wider

at 132.2bps. There are some concerns though about the economic plan that has

been reported and the 2 parties, M5S and League, still have not agreed a PM.

- Very little data rom the Eurozone today so attention will remain on Italian

politics and comments from ECB Lautenschlaeger & Coeure.