Price action in core EGBs has been......>

EGB SUMMARY: Price action in core EGBs has been contained today with the market

lacking data or headline catalysts. 

- Most analysts expect the July ECB meeting to be a staging ground for a package

of easing measures in September. A July cut to the deposit rate is arguably

under-priced in the market.

- Bunds trade close to unch on the day and the curve is flat. Current yield

levels: 2-year -0.785%, 5-year -0.681%, 10-year -0.354%, 30-year 0.245%.

- There has been similarly limited movement in the French OAT curve.

- BTPs have seen decent price action in what is otherwise a quiet session.

Yields are 4-5bp lower on the day.

- Euribor futures are broadly flat, albeit with blues 0.5-1.0 ticks higher.

- Ahead of the ECB meeting on Thursday the most significant data releases will

be preliminary July PMIs for Germany, France and the Eurozone (published

Wednesday), as well as the German July IFO print (due Thursday).