It is a rather slow and steady start to........>

EGBS: It is a rather slow and steady start to European government bond trading

with little news seen overnight to direct markets. EGBs though have edged

slightly higher in the first hour of trade but wait on Eurozone data and keep

eye out for any geo-political talk.

- German 10-yr yield is 1.2bp lower at 0.308% with 2s/10s 0.3bp tighter and

10s/30s 0.2bp wider and therefore pivoting the curve slightly.

- EMU periphery have also opened on the front-foot with front end of the BTP

curve rallying by circa 2.5bps, while 10-yr yield is 1.1bp lower at 3.11%.

- Main event this morning will be release of Eurozone final inflation data at

0900GMT. Consensus is for the headline rate to remain at 2.1% y/y and for core

to be steady at 1.1% y/y.

- Markets will also be keeping close eye on any comments from Italian and Turkey

officials, while any update on US/China trade will also be sort

- Euribor futures are mixed, strip touch flatter as white contracts are steady

to 0.5 tick lower, while greens and blues are steady to 0.5 tick higher