Today's early movement in the EGB/EUR...>

EGB SUMMARY: Today's early movement in the EGB/EUR swap space have been fairly

limited thus far. Somewhat surprisingly, the long end of the Italian curve is

performing strongest with a 1.3bp yield decline in the 10Y BTP. Also worth

mentioning is a decent bid to the front end of the French curve, which benefits

from a redemption payment by a E13.7bln OAT.

- Equity markets are buoyant at the open today and the DAX has opened 0.8%

higher, following on from strong performance in Asia.

- The 10Y Bund yield is flat on the day, likely incorporating the threat from

the Bund auction on Wednesday (3 of the last 4 10Y Bund auctions have been

uncovered). 

- There is no supply today but the market is hanging on the possibility of a

Belgian 15Y Green bond, which was communicated on Friday for the near future. 

- Futures contract roll activity will step up substantially in the eurex

contracts. Within this space, we calculate that the Bund is leading the Eurex

rolls with 11.9% done so far.

- Coeure and Draghi are the two scheduled ECB speakers today.