Japanese markets were back from their...>

EGB SUMMARY: Japanese markets were back from their holiday and appeared to

support mild bid in US Treasuries overnight which has carried over into the

start of the European session. Markets though remain range bound with little

data seen to direct markets and continued high volatility in global equity

markets keeping markets on their toes. German 10-yr yield is 1.8bp lower at

0.739%.

- There is a dearth of Eurozone data released today so attention will be on bond

supply, Italy taps 3-yr, 7-yr and 30-yr BTPs and Belgium is expected to launch a

new 15-20-yr syndicated green Olo bond.

- Markets will also be keeping an eye on UK January inflation data due at

0930GMT

- EMU periphery bonds are modestly higher as well but underperforming

core/semi-core markets with Bund/BTP 10-yr spread 0.7bp wider. Curve wise the

2-5-yr part of the BTP curve is outperforming, while on the Spanish curve it is

the 10-yr that is finding the most support.