German bonds have reversed early........>

EGB SUMMARY: German bonds have reversed early gains, with Schatz, Bobl and Bund

Dec18 futures all hitting one-month lows, but Italian BTPs continue to rally on

more conciliatory budget signals from govt officials over the weekend.

- The German curve is bear steepening, with 2-Yr yields up 1.1bps at -0.542%,

5-Yr up 1.6bps at -0.1590%, and 10-Yr up 1.9bps at 0.406%.

- 30-Yr suffering worst, yield up 2.8bps at 1.091%, ahead of Wednesday's sale of

E1.0bln 1.25% Aug-48.

- Italian two-year yields have halved from last week's high, down 16.5bps Monday

at 0.757%. 10-yrs are in 10.4bps at 2.930%, with the spread over Bunds narrowing

by 12.3bps at 252.5bps. Still not quite at the August low of 248.8bps.

- Rest of EGB periphery also narrowing to Bunds, Spain 10s in 2.6bps at

104.8bps, Portugal in 5bps at 146.4bps, and Greece in 11.6bps at 379.2bps.

- The Euribor futures strip is bear steepening, with Dec21-Jun22 contracts off

1.5 ticks, with Mar20-to-Sep21s off 0.5-1.0 ticks and the short end unchanged.

- No data for rest of Monday; Tuesday sees France Q2 employment data and German

ZEW. German Fin Min Scholz also set to introduce 2019 Federal Budget Tuesday.