It has been a relatively quiet..........>

EGB SUMMARY: It has been a relatively quiet session for EGBs with equities

instead taking the brunt of the escalation in international trade tensions. 

- German bunds have rallied on the back of Chancellor Angela Merkel receiving a

short-term reprieve from her coalition partner after a spat over migration

threatened government stability. The benchmark 10-year bund yield has edged down

to 0.363% from 0.396% at the open and in the middle of the daily range.

Meanwhile, the 2-year yield has increased to -0.630% from a session low of

-0.644, pulling the 2s10s spread down to 98bps from 101bps at the open.

- Long-end French OATS have had a relatively bumpy session, with the 30-year OAT

yield trading at 1.637%, towards the lower end of the daily range. The curve has

similarly flattened, with the 2s10s spread down to 122bps from a high of 124bps.

- Following a sharp lurch lower to 0.398%, the benchmark 2-year Italian BTP

yield has stabilised at 0.562% while the 10-year has drifted down to 2.538% from

a high of 2.601%.

- The EURIBOR futures strip has flattened with limited movement in Whites and a

2.5-3.0 tick higher in Greens and Blues.