Not much going on in the EGB market.....>

EGB SUMMARY: Not much going on in the EGB market today. There is a small

pivoting of the German  yield curve on Monday as the 2Y yield rises 0.2bp and

the 30Y is down 1.3bp.

- Weak German industrial production numbers shows a 1.1% monthly decline in June

and compared a consensus for a small rise. The data solicited little obvious

reaction from Bunds at the market open.

- The low volatility environment is helping the peripheral markets strengthen

and outperform; both the Spanish and Italian 10-Year spreads to Germany are

around 2bp tighter already today. The movement has taken the Bund-Bonos spread

below 100bp again to 99bp and the spread is struggling to distance itself from

this round number. Generally, EGBs are performing strongly relative to swaps,

even though repo rates have been declining in the past 3 weeks. 

- European equity markets are showing small gains at the open, the much-watched

dollar-yen FX rate has flat-lined and oil prices are flat.