EGBs have been under pressure today,....>

EGB SUMMARY: EGBs have been under pressure today, with 10y yields rising across

all major countries (except Greece). These moves have largely been driven by

increasing inflation expectations with the 5y5y inflation swap up 1.7bp today to

1.496% at the time of writing.

- There has been a slew of European data today with PMI data mixed this morning

(Spain the highlight as it saw a sizeable miss) and Eurozone inflation data in

line with consensus (albeit with core a tenth lower than expected).

- Bund futures are 0.11 lower on the day at 165.20 - largely unch since the US

open.

- Schatz yields are 1.1bp higher at -0.508% with 10y Bund yields 0.7bp higher at

0.189% as the curve has flattened a little through the afternoon.

- Peripheral spreads are on the whole a little higher but semi-core spreads are

largely unch on the day.

- Greek 10y yields have continued their downward trend and are now at their

lowest levels since the Eurozone sovereign crisis began at 3.65%.