EGBs have opened on the back foot weighed by...>

EGBS: EGBs have opened on the back foot weighed by slight risk-on sentiment as

European stocks edge higher as North Korea continues to make the right noises

and signals it might close its nuclear test site in May. German 10-yr Bund yield

is 1.5bp higher at 0.586%.

- But there is a lack of real direction though as both China and Japan were

closed overnight and markets look ahead to key German flash HICP later today.

German sate of Saxony inflation was unchanged in April but ticked to 1.6% from

1.5% on a yearly basis, in-line with MNI's pan-German median survey.

- EMU periphery 10-yr spreads to Germany are circa 0.5bp wider but are slowly

paring losses. Main news this morning has been from Italy where the leader of

the 5SM has said that a coalition government with the PD party is unlikely.

- Euribors have edged lower with curve steepening as blue contracts fall by 2-3

ticks, but volume is light so far.