European government bonds have opened..........>

EGBS: European government bonds have opened modestly lower with the exception of

Italian BTPs which have rallied higher led by the short-end of the curve as

markets pare recent losses. 5% rally in the Turkish Lira in last hour or so

appears to supporting risk-on move in markets.

- German 10-yr Bund yield is 1.6bp higher at 0.327% with curve steeper as

short-end remains relatively anchored. 10-yr Bund/BTP spread is 8.8bp tighter at

270.2bps while 2-yr yield has fallen 8.3bps to 1.249%.

- Reuters reported that Italy PM Conte and top ministers held 2019 budget

meeting on Monday and agreed to cut the debt which appears to be giving a well

need boost to BTPs so far this morning. 

- Data this morning has seen German Q2 GDP come in at 0.5% q/q, above consensus

of +0.4% q/q, however, despite upward revision to Q1 GDP as well the annual

figure was revised lower.

- While final inflation from German, France and Spain have all come in unrevised

at 2.1% y/y, 2.6% y/y and 2.3% y/y respectively. 

- Euribor strip is marginally steeper as blue contracts are 0.5 tick lower.