European government bonds have opened steady...>

EGBS: European government bonds have opened steady to a touch higher, once again

underpinned by trade tensions and following surprise contraction in German

factory orders for July. German 10-yr yield is 0.2bp lower at 0.378%, curve

slightly bull steepening as short-end outperforms the long-end 

- Rally in Italy BTPs are taking a breather Thursday following strong

outperformance so far this week with the crucial 2019 budget still in focus.

Latest headlines crossing the wires this morning say that both the Lega and 5SM

are looking at a budget deficit of between 2-2.5% while Finance Minister Tria

may accept 1.5%. Italy 10-yr yield is around 2bp lower at 3.088%.

- There is little further data from the Eurozone today, however there is the

Riksbank monetary policy decision at 0730GMT (likely unchanged) and then bond

auctions from Spain (5-yr, 10-yr, 30-yr Bonos & 3-yr linker) and France (10-yr,

13-yr, 16-yr & 50-yr) which they markets will have to digest.

- Euribor futures are steady to touch higher, strip slightly flatter as blue

contracts rise by 0.5 to 1 tick whiles whites are unchanged to +0.5