EGBs opening positively across the board.......>

EGBS: EGBs opening positively across the board supported by tick higher in US

Treasuries overnight as BoJ leaves policy unchanged but downgrades its inflation

assessment. German 10-yr Bund yield is 5bp lower at 0.378%, curve bull

flattening as short-end remains anchored. 

- While risk of a trade war notched higher with US President Trump is reported

to have signed-off on $50bln China tariffs and China has indicated it is ready

to retaliate also underpins move higher in bonds.

- Overall view on ECB actions yesterday was that it was a dovish taper and

policy is likely to remain accommodative for a longer period with markets unsure

if the ECB will see growth and inflation rise in-line with their forecasts.

- Main events today will be release of Eurozone final inflation data for May,

expected to be unrevised from flash estimate at 1.9% y/y, and a couple of ECB

speakers scheduled throughout the day. Nowotny due to speak at 0900BST and

Coeure in Paris at 0945BST

- Euribors have opened steady to higher, curve flatter as blue contracts rally

by 6/6.5 ticks and whites 0 to 0.5 ticks.