EGBs have opened modestly higher despite the...>

EGBS: EGBs have opened modestly higher despite the rise in commodity prices

overnight with yields falling between 1bp to 2bp as US Treasuries squeezed

higher after EU session closed yesterday. German 10-yr Bund yield is 1.9bp lower

at 0.617%.

- There is a raft of EGB supply today mainly concentrated in the short-end,

starting with Italy CTZ and linker issuance for up to E3.25bln, while Germany

taps its 2-yr Schatz for E4bln and Finland re-opens its 10-yr bond for E1bln.

- Data also eyed today and following a tough softer than expected French

manufacturing sentiment index, German IFO is released at 0900BST and provide

further indication of whether activity in the largest economy in the Eurozone is

picking up or remaining sluggish.

- EMU periphery are also slightly better bid, but lagging its core friends with

Bund/PGB 10-yr spread 1bp wider, adding to smalls gains seen yesterday

afternoon.