Once again core/semi-core EGBs are opening.....>

EGBS: Once again core/semi-core EGBs are opening on the back foot, weighed by

upcoming long-end supply and modest risk-on flows as trade rhetoric dies down.

German 10-yr Bund yield is 1.7bp higher at 0.317%, curve slightly steeper with

2s/10s 1.4bp wider.

- EMU periphery bonds are touch higher so far Tuesday with 10-yr Bund/BTP spread

2.8bp tighter at 233.8bps, supported by risk-on tone in markets and taking BTP

auction announcement in its stride while curve is bull steepening as short-end

continues to outperform the long-end.

- EGB bond supply is concentrated on the long-end of the curve curve this week,

with the Netherlands kicking things off today with tap of its 10-yr DSL and

Germany taps 15-yr and 30-yr linkers. The EFSF are also expected to open books

for re-opening a 0.95% Feb 2028 bond and a launch a new 35yr benchmark via a

dual syndication deal. 

- Elsewhere, earlier data saw disappointing French industrial production for

May, contracting 0.2%. While German ZEW for July is released at 0900GMT