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There is a mild risk-on sentiment at start.....>

EGBS: There is a mild risk-on sentiment at start of European bond trading Monday
with German 10-yr Bund yield rising 0.9bp to 0.301%, while Italy 10-yr yield is
0.5bp lower at 2.709%.
- US Tsys slipped lower in Asia with broader markets seemingly breathing a sigh
of relief after the U.S.-China trade spat failed to escalate further over the
weekend. While it was a relatively quiet weekend for European politics and
German exports jumped higher in May.
- The main event today will be comments from ECB president Mario Draghi at the
European parliament in Brussels, although comments on monetary policy might be
limited as he is speaking in his capacity as ESRB Chair.
- BTPs have opened modestly higher with the short-end once gain leading the way,
so continuing to steepen the curve. 2s/10s spread was near 200bps last week, but
now trades at 188.7bps. Market will be keeping an eye on finance ministry
announcement of medium/long BTP supply tonight
- Sovereign bond issuance picks up this week and with no offsetting coupon or
redemption payments, EGBs could be under pressure this week. 

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