German FI futures unch. to small bid; Schatz...>

EGBS: German FI futures unch. to small bid; Schatz unch., Bobls +2.0, Bunds +11.

- EGBs moved higher on Monday, amid a lack of data/news flow. Bund yields were

operating just above pre-Sintra levels as traders got to their desks on Monday,

seemingly giving them a subliminal green light to "buy the dip." Meanwhile, the

likes of SocGen & UBS turned up the heat in terms of calls for ECB easing.

- BTPs were the outperformers, with the 10-Year BTP/Bund spread closing at

~190bp. Most attributed the BTP move to weekend reports suggesting that Italian

Dep PM Salvini hasn't ruled out the possibility of calling a snap election in

September, in an attempt to seize outright power.

- Bonos shrugged off the seemingly inevitable Spanish national election (yes,

another one) as talks between PM Sanchez & Podemos broke down.

- Greece was the underperformer in the periphery (even then, 10-Year spreads vs.

Bunds were flat), after the country mandated banks for a fresh round of 7-Year

issuance, on the back of speculation surrounding the matter in recent weeks.

- Focus today turns to commentary from ECB's Villeroy, as well as the latest

German ZEW survey & EZ trade data.