EGBs have had a quieter afternoon.......>

EGB SUMMARY: EGBs have had a quieter afternoon following moves higher this

morning on the back of increased concerns about US-China trade talks and Iranian

nuclear proliferation.

- Bunds have given up some of their gains but Bund futures remain up 0.19 today

at 166.27 with 10y Bund yields down -1.3bp at -0.52%. Schatz yields are down

-0.9bp at -0.620%.

- This morning also saw BTP-Bund spreads widen, with the 10y spread hitting

275bp on the back of headlines stating that the League was "urging" tax cuts.

However, this afternoon all of these moves have been retraced with spreads

falling back to 266bp.

- GGB-Bund spreads have remained wider, however, with 10y spreads over 10bp

wider on the day. This follows comments from PM Tsipras yesterday that Greece

will lower its primary surplus target to 2.5% from the 3.5% previously agreed

with its international creditors. GGB-Bund spreads have been moving gradually

higher since hitting a nadir of 322bp in mid-April. However, they remain some

way off the ~425bp level seen at the turn of the year.