EGBs opened higher as global asset......>

EGB SUMMARY: EGBs opened higher as global asset markets responded in a risk-off

way to the renewed threat of a trade war. With the exception of a small upward

move early on as equity markets slumped, EGB markets have largely traded in a

narrow range.

- Currently, the DAX and FTSE-MIB are the weakest out there; each showing a 2.1%

decline.

- Peripheral spreads are seemingly unfazed by the threat of Italian elections of

SPD vote results at the weekend.

- Much attention in EGB markets regards supply. Which bonds Ireland might

announce on Monday for next week's auction or if there might be some other

syndicated drive-by in a light issuance week such as a new long-dated OATei.

There was very heavy linker supply in Jan/Feb and France sells linkers on 15

March via regular auctions. However, an ECB meeting complicates.

- The always volatile German retail sales data printed weak in January at

2.3%Y/Y but data had no significant impact upon European rates trading today.

- Futures roll activity has been extremely elevated.