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EGBs had a weak day, with no clear......>

EGB SUMMARY
EGB SUMMARY: EGBs had a weak day, with no clear driver for the broad-based
sell-off as the day went on. Bonds sold off alongside equity market weakness,
more Italian political noise, and concerns over the upcoming announcement by US
President Trump on the Iran deal, with no risk-off bid materialising in support
of EGBs. Jun18 bund futures last down 43 ticks at 158.88.
- Curve steepening the other theme, with 10-yr EGBs selling off and 2-yr hardly
moving. German 2s-10s last up 3.5bps to 113.58, and a little steepening on the
Euribor futures strip, as blues off 30-35 ticks and whites and reds basically
flat.
- Italian BTP 10yrs remain near day`s lows on early election concerns and
alongside bund sell-off.
- Particularly notable though is Italy's underperformance vs other peripheries,
with the 10s spread widening 6.2bps over Spain Bonos to 54.5bps, the biggest
daily move in that spread since the Italy March elections and one of the biggest
since 2016. That is a signal that amid a broader bond sell-off, idiosyncratic
political risks still the big driver for Italy.

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