June Bund contract opened unchanged.....>

EGB SUMMARY: June Bund contract opened unchanged but quickly slide lower likely

weighed by recovery in European equity futures on hope that China and the US can

sort out their differences on trade. While upward revision to French Q4 GDP data

is also seen weighing. German 10-yr Bund yield is 0.7bp higher at 0.534%.

- French Q4 GDP was revised to 0.7% q/q from initial estimate of 0.6% q/q led by

rise in business capital investment and exports.

- Spain is the pick of European bonds so far this morning as news of former

Catalonia leader Carles Puigdemont being arrested in Germany, is viewed

positively by the markets. 10-yr Bund/Bonos spread is 2.7bp tighter at 71.5bps.

- The positive move in Spain is not rubbing off on the rest of the periphery

though and with 10-yr Bund/BTP spread 1bp wider at 136bps.

- Supply this week is pretty light it being the last week of March and a

shortened week due to Easter holiday this weekend. However Italy is due up today

with a new 2-yr CTZ and a 5-yr linker BTP for a total amount of E5.5bln

- Little further data from the Eurozone today, however ECB Weidmann and Nowotny

are due to speak at around 1030BST in Vienna and Nouy at 1400BST in Brussels.