EGBs have opened with a return to risk-on......>

EGBS: EGBs have opened with a return to risk-on sentiment with a lack of

US/China rhetoric seen to derail the markets. There was no new revelations in

comments from ECB Coeure overnight as well. German 10-yr Bund yield is 1.9bp

higher at 0.346%, curve touch steeper as short-end remains anchored.

- EMU periphery have pared opening modest moves higher as bond supply expected

over the next few days looks to be weighing. Italy taps 2-yr floaters and BTP

linkers for up to E4.5bln Tuesday, while Spain has opened books on new 10-yr

Euro benchmark deal at mid-swaps +57bps. Italy then taps CCTeu and 5/-yr and

10-yr BTPS for up to E6.5bln on Thursday. 10-yr Bund/BTP spread is little

changed at 248.5bps vs low of 245.5bp.

- ECB Coeure speaking in a LE Figaro interview earlier reiterated ECB main

message that rates would remain unchanged through summer of 2019 and reform is

still needed.

- There is a dearth of European data today, however ECB Guindos speaks at the

Bond Market Contact Group (BMCG) organised by the ECB, in Frankfurt at 1200GMT