There wasn't much change in EGB.........>

EGB SUMMARY: There wasn't much change in EGB prices at the open, just the (by

now) usual bid to the periphery. However, weak French CPI data, a risk-off

opening for the equity market and talk of early month-end duration extensions

set the market squeezing higher.

- At 1000GMT, the Eurozone CPI data printed in line with the screen consensus,

which sent the market lower because the earlier weak French data had threatened

a lower print.

- Germany suffered weak demand for the 10Y Bund auction, which was technically

uncovered but the market has become used to such news and no longer takes this

as a signal of potential demand.

- As Europe moved into the afternoon, Gilts rallied on the back of the EU Brexit

text and took EGBs with them. Month-end extension flows added to bullishness. 

- Currently, the 10Y Bund yield is 1.6bp lower at 0.663% with a small

outperformance of the belly. Peripheral spreads are little changed but

long-dated France performed strongly ahead of Thursday's supply.

- Slovenia is sold E1.25bln of 10Y, 15Y and 30Y taps via syndication.