Some modest early weakness this.........>

EGB SUMMARY: Some modest early weakness this morning in EGBs gave way to several

markets moving basically flat on the day. Long-dated Euribor futures had traded

down 2 ticks but are now virtually unchanged, with ERM1 a half tick under the

opening level at 99.140.

- Curves are a little steeper. German 2s10s are up around 1bps to 115.52, with

the 10-year bund up 0.7bps despite soft regional CPI data this morning

potentially pointing to a similarly weak national figure at 1400 CET. RXM8 is 15

ticks off its lows at 158.53, but 11 ticks lower overall.

- Periphery spreads are wider, with the Italy BTP/bund spread moving out 1.5bps

to 118.60bps and Bonos/bunds out 1.0bps to 70.06bps.

- While a quiet session may be no surprise given May 1 holidays, things will get

interesting later this week with EMU CPI and GDP data, plus heavy US data flow.

- France kicks off T-bill issuance this aft with tap of 3-month Jul 25, 2018 BTF

for between E2.8-E3.2bln, tap of 6-month Sep 26, 2018 BTF for between

E0.7-E1.1bln and issue of a new 12-month Apr 25, 2019 BTF for between

E0.7-E1.1bln.