EGBs has opened on the back foot with the......>

EGBS: EGBs has opened on the back foot with the short-end of the curves weighed

the most following Bloomberg ECB sources story that some GC members think

raising rates at end of 2019 is too late. Strong German factory orders for May

and long-end supply from France and Spain Bonos auction also seen weighing.

German 10-yr yield is 2.8bp higher at 0.333% with 2s/10s 1.4bp tighter.

- Bloomberg ECB source story said that some GC members where "uneasy" with first

interest rate hike not being priced in until December 2019. However this is not

too dissimilar to MNI's insight story last week that said there was already some

divergence of views on exact timing of rate hike and there is already a debate

about the size of the first rate hike.

- EMU periphery are fairing slightly better then German Bunds, taking positives

from the ECB story, with 10-yr Bund/BTP spread 0.5bp tighter.

- Looking ahead little further data from the Eurozone, however ECB Nowotny,

Mersch and Weidmann are all scheduled to speak today at a conference in Austria.

Attention then turns to the return of US markets and release of ADP and ISM data

followed by minutes of June's FOMC meeting