EGBs have opened with on a slight positive.....>

EGBS: EGBs have opened with on a slight positive note with some in the market

having growing concerns over the strength of the Chinese economy as Hang Seng

and Shanghai comp fall over 1%. German 10-yr yield is 1.6bp lower at 0.325% with

the yield curve flatter as short-end remains anchored.

- EMU periphery have also opened modestly higher led by the short-end of the

Italian curve as concerns over Italy subside for now and in-turn bull steepening

the curve. 2-yr BTP yield is 8.6bp lower at 0.965%. Eyes though will be on

todays 6-month BOT auction. while 10-yr Bund/BTP spread is 1.9bp tighter at

253bps.

- Weaker than expected French consumer confidence in June (97 vs 99) is also

underpinning higher move in EGBs.

- Little further Eurozone data or official speakers today so attention likely to

be on any geo-political and/or global trade headlines. There is no Eurozone

sovereign bond issuance today as well. Italy Tap 5-/10-yr BTPs tomorrow

- Euribor strip is slightly flatter as green/blue contracts rise by 0.5 to 1

tick higher while whites are steady to 0.5 tick lower.