EGBs have traded in fairly..............>

EGB SUMMARY: EGBs have traded in fairly directionless fashion to open Thursday,

with core instruments a little higher and periphery bonds slightly weaker.

- German Bunds rallied in the morning following regional inflation data

releases, with the Sep8 future up 31 ticks to a high of 162.49 around 1000BST,

but has weakened to 162.27 since then as equities have turned higher on reports

that the EU is willing to scrap car tariffs in a US trade deal.

- German national Aug flash inflation data at 1300BST is in focus later today,

with slowing regional price data today supporting estimates for a slowdown to

0.1% M/M nationwide.

- Italian BTPS have traded in whipsaw fashion, with the Sep8 future down 9 ticks

at 123.53 but not before rising from 123.48 to 123.95 around the time of a BTP

auction that saw strong demand, subsequently fading those gains.

- EM risk worth watching too given European bank exposure to emerging markets:

Turkish lira is at a two-week low of 6.647 vs USD after Fitch expressed concerns

over Turkish bank FX exposure, while the Argentine peso is at all-time lows as

it requests an IMF disbursement.