EGBs have faded modestly after a........>

EGB SUMMARY: EGBs have faded modestly after a strong start to the day, which has

been punctuated by mixed-to-weak data (French preliminary Q1 GDP came in softer

than expected at +0.3% q/q; Spain GDP was in line with consensus at +0.7% q/q). 

-The German June 18 bund futures contract has fallen 18 ticks from the high to

158.61, though is still up 23 ticks on the day. The German curve flattened

initially, with the 2s10s spread dropping about 1.7bps to a low of 113.23bps

mid-morning, before widening to 114.54bps, still 0.4bps lower overall today.

- Periphery performance is mixed. Italian bonds underperformed initially

alongside a ramp-up in supply (albeit a fairly straightforward auction this

morning), with the 10-year BTP/bund spread up 4.5bps at one point this morning

before tightening to about 1.0bps higher on the day at 116.35bps. Portuguese

10-year spreads have fallen by 0.64bps while Spain bonos are 0.51bps tighter.

- There is a host of ECB speakers scheduled throughout the day as Ecofin meeting

gets underway in Sofia, but no market-moving statements so far.