German FI little changed at writing; Schatz....>

EGBS: German FI little changed at writing; Schatz unch., Bobls -2, Bunds -9.

- 10-Year Bund yields closed within 5bp of their all time low, with focus

squarely on this week's ECB meeting, our full ECB preview will be published at

some point today.

- Peripheral matters continue to provide interest, the Spanish socialist party

failed to form a gov't y'day & will try again tomorrow. They only need a simple

majority here, as opposed to the absolute majority that was required y'day.

- In Italy PM Conte said that blocking works on a rail link with France would

cost Italy more than completing the project. This is seen as as a setback for

the 5-Star Party, with party leader di Maio reiterating that he plans to oppose

the project. Elsewhere, the Italian Treasury cancelled some of its bond auctions

scheduled for August, due to its "large cash availability." it said Tuesday. The

cancellations affect the mid-month BTP auction on Aug. 13 & the BTPei auction on

Aug 27.

- Flash EZ PMI data headlines the regional docket today.