European government bonds are trading mixed....>

EGBS: European government bonds are trading mixed in summer thin markets with

little direction seen overnight as RBA leaves policy unchanged as expected and

made very few changes to its statement. German 10-yr Bund yield is 0.3bp higher

at 0.392%, with curve little changed.

- Early data saw German industrial production fall slightly more than expected

but its trade balance tick higher. While the French trade deficit was larger

than expected.

- EMU periphery have opened modestly higher with the Italy 2-yr yield falling

3.5bp so far this morning as markets are clam ahead of budget meeting scheduled

for tomorrow. 10-yr Bund/BTP spread is 1.7bp tighter at 250bps

- No further Eurozone data or official speakers expected today so focus remains

on latest global trade rhetoric between US and China, new US sanctions on Iran

and Italy budget meeting.

- Euribor futures are little changed