Quiet start to the week's trading and...>

EGB SUMMARY: Quiet start to the week's trading and the Bund is at 157.02, very

close to where is sat Friday. The 10Y Bund yield is unchanged at 0.648%. Better

bid to the Schatz with the yield -0.9bp at -0.564%.

- Equities are firmer: DAX already 0.7% higher on Monday and follows 1.9% gain

in Hang Seng and 1.7% rise in Nikkei.

- Euro has popped slightly higher in early European trade to 1.234 against

across the board weakness in the USD.

- Renzi has ruled out a PD coalition with M5S. Italian BTPs are weakest in EGB

space today and initially led by the 20-30Y section of the curve, although this

has now moderated. The Bund-BTP 10Y last 1.2bp wider at 137.5bp. There is

Italian supply tomorrow. Shorter end of Spain also fairly weak, although on

Monday all yield movements are small.

- German swap spreads stable. RXM8 invoice spread unchanged at 44bp.

- Coeure says trade war is "the major threat right now".

- Spain to announce Thursday's auction size at 1330GMT today. Should be around

E4-5bln.