The movement in EGB prices is mostly....>

EGB SUMMARY: The movement in EGB prices is mostly about responding to the

risk-off movement in light of Trump's tariff announcement. As such, the Bund

contract opened 20 ticks higher at 159.90 and has roughly stuck there. 

- Even though this is the final trading day before the Italian elections there

is no obvious nod to that fact from the BTP market; there is very little

movement in core-periphery spreads.

- Also on Sunday, the SPD member vote on the CDU/CSU coalition agreement will be

announced. A 'yes' vote is expected and is also seen as a core-periphery

tightener.

- There will be a lot of action in the rolls today. According to MNI calcs, the

following are the percentage of contracts already rolled into June:

DU - 21%, OE - 15%, RX - 25%, UB - 24%, IK - 11%, OAT - 21%. 

- EGB curves are flattening slightly today. German 2-10Y is 1.5bp narrower

mostly because of a 2.0bp decline in the 10Y Bund to 0.624%.