Risk off has been the general theme.....>

EGB SUMMARY: Risk off has been the general theme of global bond markets today,

with concerns surrounding US-China trade talks and North Korean missile testing

setting the tone. Despite USTs taking another leg higher at the US open as the

S&P500 fell below the 50-dma, Bunds have had a more sanguine afternoon. There

was little reaction to headlines that the German government was facing a funding

shortfall of E10.5bln in the 2019-2023 budget plans due to new tax revenue

estimates.

- Concerns about Italian and Greek fiscal policy and targets have continued

through today with 10y BTP-Bund spreads 6.4bp wider on the day and GGB-Bund 10y

spreads 10.4bp wider on the day.

- Bund futures are up 0.08 today at 166.28 with 10y Bund yields down -0.7bp at

-0.52% and Schatz yields down -1.3bp at -0.633%.

- BTP futures are down -0.62 today at 129.55 with 10y yields up 5.2bp at 2.665%

and 2y yields up 6.0bp at 0.579%.

- OAT futures are down -0.18 today at 162.48 with 10y yields up 0.9bp at 0.339%

and 2y yields down -0.6bp at -0.573%.