EGBS have edged lower at start of Tuesday......>

EGBS: EGBS have edged lower at start of Tuesday trade taking cue from mildly

soft US Treasuries overnight, although there has been little seen to direct

markets. Attention this morning is on flash PMI data with France already showing

a slightly larger fall than expected, but this has failed to support EGBs. 

- German flash PMI crosses the wires at 0730GMT and then overall Eurozone PMIs

half-an-hour later. Market consensus is looking for the numbers to come in a

touch lower than in June.

- German 10-yr yield is 0.8bp higher at 0.414% and is leading the yield curve

higher as 2-yr remains anchored and widening the 2s/10s spread by a further

0.8bps to 101.1bps.

- After a positive start BTPs have pared modest gains to now be fairing slightly

worse than Bunds with markets looking ahead to supply later in the week. 10-yr

Bund/BTP spread is 1.2bp wider at 224.5bps.

- Euribor strip is steady to 1.5 ticks lower with some decent selling already

seen in Sep19 contract, circa 10k at 100.19