EGBS have opened mixed with core coming........>

EGBS: EGBS have opened mixed with core coming under some earlier light selling

pressure despite very weak German factory orders with curves modestly steeper,

while semi-core are mixed with curves slightly flatter and EMU periphery seeing

some fresh buying led by rally in front end of the BTP curve.

- German 10-yr yield is 0.8bp higher at 0.416% with 2s/10s 0.3bp wider. 2-yr BTP

yield is 4.3bp lower as Salvini says the economy is in good shape while 10-yr

yield is 1.4bp lower.

- German factory orders for June dropped 4.0% much more the the 0.5% expected

but has not supported core EGBs so far this morning as markets trade with a

modest risk-on tone.

- Asian markets were relatively quiet overnight, however over the weekend, ECB's

Lautenschlaeger said in an interview with Welt am Sonntag that interest rates

needed to raised gradually  but "precondition is that the path towards price

stability has firmed sustainably".

- No Eurozone sovereign bond issuance this week and little data as well, so

attention likely to be on trade, Brexit and Italian politics.