German Bunds are trading little.........>

EGB SUMMARY: German Bunds are trading little changed so far Wednesday, with

little direction seen from Asian markets overnight. US Treasuries were slightly

weaker, but this only drew in buying from trading accounts in 2-y and 5-yr

notes, with similar interest also seen further out the curve in tens and thirty

year Tsys. Session was fairly quiet though added sources.

- German 10-year Bund is 0.3bp higher at 0.494%, with the long-end of the yield

curve seen flattening though as 30-yr trades 0.2bp lower. 

- The long-end of EMU Periphery bonds have started Wednesday a little under

pressure with yields trading around 2.5bp higher as markets look ahead to Spain

and French bond auctions tomorrow.

- Germany comes to the issuance market again Wednesday with tap of its 10-year

benchmark 0.5% Aug-2027 Bund for up to E3bln and is likely to weigh on this part

of the curve this morning.

- Not much in the way of Eurozone data today, so attention is expected to turn

to release of US Treasury funding announcement at 1230GMT.