EGBs open with a risk-on tone shrugging off....>

EGBS: EGBs open with a risk-on tone shrugging off the tension between the US and

the rest of the G7 nations, while Italy's new economy minister Tria has ruled

out leaving the Euro and would focus on structural reforms over deficit

spending. German 10-yr Bund yield is 2.7bp higher at 0.475%, while Bund/BTP

spread is 30.1bp tighter at 238.1bps.

- So far markets are not reacting to the fallout from the G7 meeting over the

weekend and are taking a look at more domestic events. Italy's finance minster

Tria has made the right noises and settled some European nerves with his

comments on Italy remaining in the Euro and has led to sharp fall in BTP yields

across the curve. The curve is bull steepening as short-end outperforms the

long-end.

- A number of key events this week to keep seen influencing markets with

Trump/Kim Jung-Un meeting tomorrow, Fed, ECB and BoJ monetary policy meetings

and key data from the UK.

- Euribor strip is mixed with blues contracts 2 to 2.5 ticks lower compared to

0.5 to 1.5 tick higher in whites.