The morning was made up of further......>

EGB SUMMARY: The morning was made up of further comments from ECB members,

Eurozone final inflation data and German 30-yr Bund re-opening auction and

overall have offered mild support to core/semi-core European government bonds.

German 10-yr yield is 0.9bp lower at 0.553% with curve slightly flatter.

- Last night ECB Weidmann sound less hawkish saying it was appropriate to end QE

this year and that predictions of a mid-2019 rate hike were realistic. While

Vice-President Constancio this morning said that ECB's forward guidance will not

be changed in the immediate future and that inflation was still not meeting

expectations. Finally ECB Nowotny weighed in on the debate on the strength of

the Euro, saying it was "not helpful".

- Bund future squeezed to session highs ahead of Eurozone final CPI release, but

pared gains as headline figure came in unrevised at 1.4% y/y. Bunds then held

steady following solid 30-yr Bund re-opening auction.

- Peripheral bonds have been under pressure from the get-go led by selling in

Italy which has seen the 10-yr Bund/BTP spread widen by 2.7bp.