EGBs have opened sharply lower taking cue......>

EGBS: EGBs have opened sharply lower taking cue from the sell-off seen in US

Treasuries after London close following the Trump/Juncker meeting on trade.

German 10-yr yield is 1.7bp higher at 0.414% with yield curve steeper as

short-end remains anchored.

- EMU periphery are fairing slightly better supported by the risk-on sentiment.

Italy due to tap 2-yr CTZ and 10-yr BTP linkers today.

- There was a positive outcome between US President Trump and the EU's Juncker

at talks in Washington yesterday with the pair agreeing to start fresh trade

talks to eliminate tariffs, barriers and subsidies

- Main event today will be the ECB monetary policy decision and press

conference. Markets expectations of fresh information on QE and forward guidance

are low, however, president Draghi is expected to get a number of questions on

these topics and his comments could be key to driving markets later this

afternoon. Markets currently pricing 10bps of rate hikes by Oct 2019.

- Euribor futures are steady to lower, curve steeper as blue Euribor contracts

fall 2.5 to 3 ticks