German FI futures little changed; Schatz.......>

EGBS: German FI futures little changed; Schatz -1.0, Bobls unch., Bunds unch..

- German supply drew the headlines yesterday, as the 1st ever round of 30-Year

supply with a 0% coupon drew woeful demand. The German debt agency admitted that

the amount of paper on offer (EUR2bn) may have been "too large."

- Italy's President will meet with the leaders of the country's major political

parties today, as he attempts to provide a fix to the recent bout of political

tumult. This will be the 2nd day of consultations, yesterday mostly involved

talks with smaller parties. MNI sources have suggested that "the majority of

Italy's PD is likely to support an alliance with the 5-Stars Movement to form a

new coalition gov't & head off the prospect of a snap election which could leave

the far-right League in control," although they cautioned "that some members of

both parties are resisting a deal." 10-Year BTPs tightened vs Bunds yesterday,

with the spread settling at 200bp.

- Local risk dominates ahead of the Fed's Jackson Hole symposium, with flash EZ

PMIs & the mins from the ECB's July MonPol decision due. The latter will be

combed for any commentary pertaining to the seemingly impending easing package.