It has been a risk-on day in EGB........>

EGB SUMMARY: It has been a risk-on day in EGB markets, with little domestic news

leaving EGBs to take their cue from USTs which have sold off on the back of

reports suggesting that a resumption of the government shutdown is looking more

likely to be avoided.

- The German curve has bear steepened with Schatz yields up 0.3bp to -0.569% and

10y Bund yields up 1.4bp to 0.134%.

- Peripheral spreads have also continued to narrow with 10y BTP-Bund spreads

falling almost 6bp on the day.

- The EU Parliament has confirmed Philip Lane will be the next Chief Economist

of the ECB while Nowotny said that the ECB will consider its interest rate

policy in the summer. Elsewhere, headlines have been rather sparse in a

generally quiet day.