EGBS have opened mixed with yield curves.......>

EGBS: EGBS have opened mixed with yield curves modestly steeper as the long-end

comes under some earlier selling pressure while the short-end remains anchored

for now. German 10-yr Bund yield is 0.2bp higher at 0.369%, bouncing off opening

low of 0.375%.

- It was a relatively quiet Asian session with US Treasuries seen ticking lower

on back of return to risk-on sentiment as newswires reported that US and China

held talks on trade and with the US saying that it is open to further talks.

- Earlier eurozone data has seen German final June HICP come in unrevised at

2.1% y/y, but with the French final figure being revised lower to 2.3% y/y from

flash estimate of 2.4%

- EMU periphery bonds have opened on a positive note led by rally in BTPS

despite todays 3-yr, 7-yr and 15-yr BTP supply for up to E6bln. 10-yr Bund/BTP

spread is 1.4bp tighter at 230.8bps.

- The main event today is likely to be release of ECB accounts of June 13/14 GC

meeting with markets looking out for any difference of opinion on the wording of

its forward guidance on interest rates.