It has been a very slow start to........>

EGB SUMMARY: It has been a very slow start to European government bond trading

with London observing August Bank Holiday and the fact that ECB Draghi did not

give anything away on likely path of its QE programme at JH speech. Bund yield

is a modest 0.5bp higher relative to Friday's European close at 0.385% as Euro

remains at elevated levels vs US Dollar.

- ECB President Draghi appeared constrained in his official speech at Jackson

Hole, but in the Q&A Draghi did say that the "recovery is proceeding" and on the

"one hand are confident that as the output gap closes inflation will continue

converging on its objective over the medium term".

- There appeared to be a E100mln+ receiver of a 14Y Euro swap @ 1.16% at

0840BST. While there has been some selling in Bund Oct calls. 

- Italy sold E2bln in 2-yr CTZ's without any trouble, and ECB money supply data

did not impact markets.

- EMU Periphery are having a more interesting day. Coming under a little

pressure at start of trade but then recovering and trading slightly better than

Germany following solid CTZ supply. 10-yr Spain & Italy are -1bp vs Bunds.