EGBs have opened but little changed, apart.....>

EGBS: EGBs have opened but little changed, apart from BTPs, from Tuesday's close

as markets await direction following another quiet session overnight. German

10-yr Bund yield is 0.5bp higher at 0.351%, curve slightly steeper as 2-yr

remains anchored for now, while long-end seen weighed by supply.

- Germany returns to the sovereign bond market Wednesday with a re-opening of

its 30-yr benchmark 1.25% Oct-48 Bund for E1bln.

- Other main event today includes the final reading of Eurozone inflation for

June. Flash estimate came in at 2.0% y/y, however there is a small risk this

could be revised down due to both French and Italy final readings being revised

slightly lower.

- Short end of Italy BTP curve has come under some early selling pressure with

markets citing LCH announcement that it has risen its margin calls on BTPs. 2-yr

BTP yield is 4.3bp higher at 0.591%, while 10-yt BTP is 1bp higher. 

- Euribor strip is steady to lower, curve a touch flatter as white contracts

fall by 0.5 tick.