Monday was epitomised by an absence.....>

EGB SUMMARY: Monday was epitomised by an absence of market-moving news. Yet,

there was a slow moving improvement in core EGB bond prices throughout the

European morning session. Heading into the close the Bund 10Y was 2.2bp lower at

0.626% and the curve movement was parallel.

- Bunds pushed slightly higher after ECB's Smets says that inflation may take

longer to rise. 

- Italian debt had a roller-coaster. Early BTP selling was said to be a switch

into Spain, as GS suggested the trade on Friday. Also, there was an article in

Il Sole 24 Ore aimed at retail investors that was negative on BTPs. The weakness

in BTPs reversed in the afternoon trading session and heading into the close the

Bund-BTP spread was 1bp wider at 137.4bp.

- Spain announced it will sell a largish E4.5-5.5bln of bonds on Thursday. EFSF

announced a E1bln re-opening of its Jan-21 on Wednesday. Netherlands announced

initial spread guidance for tomorrow's new 10Y DSL as 15.5-18.5bp over the

German bmk.