EGBS have edged slightly higher in early.......>

EGBS: EGBS have edged slightly higher in early Tuesday morning trade, albeit in

very light volume as markets seen winding down for summer holidays. German 10-yr

Bund yield is 0.2bp lower at 0.362% with the yield curve little changed.

- News overnight in Asia was thin and US Treasuries stuck to a narrow range

which led to EGBs opening little changed.

- BTPS are the star performers so far this morning with 10-yr BTP yield dropping

1.3bps to 2.564% with the yield curve bull steepening as short-end continues to

see the most gains. While the Spanish 10-yr yield is 0.9bp lower.

- Eurozone data is limited to Italy industrial and final HICP at 0900BST and

1000BST respectively. However there is some bond supply today with Germany

re-opening its 2-yr benchmark Jun-20 Schatz for E3bln. While latest UK labour

data crosses the wires at 0930BST.

- Euribor futures are mixed, curve flatter as white contracts are steady to 0.5

tick lower, while green and blue contracts rise be 0.5 to 1 tick.