Majority of EGBs have opened steady to.........>

EGBS: Majority of EGBs have opened steady to slightly lower, taking cue from

slip in US Treasuries overnight and news that Germany & France have agreed on a

budget for the Eurozone. German 10-yr Bund yield is 0.3bp higher at 0.376%.

- US Treasuries initially found a slight bid midway through the Asian session,

but reversed gains and slipped lower just ahead of European open with little

seen to initiate the move.

- Merkel and Macron agreed on Tuesday to create a budget for the Eurozone and

hailed a "new chapter" for the currency union, but they left the details to be

worked out later with other members of the 19-country bloc.

- EMU periphery are fairing slightly better than core/semi-core EGBs helped by

the Merkel/Macron news. 10-yr Bund/BTP spread is 2.6bp tighter at 215.7bps.

- Once again little in the way of data from the UK or the Eurozone today,

however a number of central bank officials are due to speak later today at the

ECB forum in Sintra.

- Germany re-opens old 30-yr Jul-44 Bund for E1.5bln today, while both France

and Spain come to the issuance market tomorrow