EGBs have opened slightly higher across the....>

EGBS: EGBs have opened slightly higher across the board taking cue from squeeze

higher in US Treasuries seen after Europe close following solid 30-yr Tsy

auction. Main event today will be Italy BTP supply and comments from ECB Draghi.

German 10-yr Bund yield is 0.9bp lower at 0.548%, with yield curve modestly

flatter as short-end remains anchored.

- There was little direction seen overnight with US Treasury future trading in

tight 2 tick range. Focus continued to fall on US trade negotiations with China,

the EU & its NAFTA counterparts, as well as the slightly softer than expected

suite of US CPI data.

- Surprisingly BTPS are outperforming both Germany and Spain this morning

despite unpopular likely formation of a government made of of populist parties

and a 3-yr, 7-yr and 15-yr BTP auction. 10-yr Bund/BTP spread is 2.5bp tighter

at 135.2bps.

- Euribors are little changed with the heavy selling in the front end seen in

the last couple of days abating for now.

- Comments from ECB Draghi at 1415BST the main highlight today.