It has been a fairly quiet start to.....>

EGB SUMMARY: It has been a fairly quiet start to the week, with core EGBs on the

front foot and Italian BTPs trading in volatile fashion on renewed political

concerns and thin volumes on UK Bank Holiday Monday.

- German Bunds have been buoyed by follow-through from comments by US Fed Chair

Powell on Friday that were interpreted as dovish, as well as some risk-off in

light of USD strength, esp vs emerging markets (Turkish lira off 3+%).

- 2-Yr Bund yield is down 0.3bps at -0.597%, with 10-Yr down 1.5bps at 0.330%. 

- Italian BTP yields have reversed earlier losses, with the 2-Yr yield down

4.0bps at 1.185%, and the - 10-Yr down 4.4bps at 3.107%. Tensions are rising

with the EU over migration issues, with Deputy PM Di Maio threatening Italy

vetoing the EU budget.

- Spreads vs Bunds widened as far as 187.4bps on the 2-Yr and 284.4bps on the

10-Yr, but those have subsided to 179.1bps and 278.2bps, respectively.

- Euribor long-dated futures are trading a tick higher in thin volumes.

- Light data calendar ahead today, with German IFO the highlight at 0900BST.

Bundesbank Board member Johannes Beermann speaks at 1700BST/1800CET.