European Government bonds have opened with.....>

EGBS: European Government bonds have opened with another risk-on feel with

core/semi-core bonds underwater, while EMU periphery, especially Italy are

trading higher. The Euro is also under slight pressure from a strong US Dollar

this morning. German 10-yr Bund yield is 1.8bp higher at 0.351% and is leading

the rest of the curve lower.

- Main news overnight was that the RBA was on the margin less dovish than

expected, leading to front ned of the Australian yield curve to nudge higher,

While China stocks enjoyed a positive day.

- Front end of the BTP curve has rallied once again this morning in hope that

the budget will be better than feared and after posting a better than expected

E1.3bln surplus in August compared to E1.1bln deficit in the same month last

year. 2-yr BTP yield is 17bp lower at 1.224%, 10-yr is 3.067%, 9.7bp lower 

- Little data from the Eurozone today, so traders waiting on return of US

markets this afternoon and before that comments from BoE governor Mark Carney.

- Euribor future are steady to lower, strip touch steeper as green and blue

contracts fall by 1 to 1.5 ticks, while whites are steady to 0.5 tick lower