Volumes have been picking up over the...>

EGB SUMMARY: Volumes have been picking up over the course of Thursday morning as

Bunds have rallied hard, though still a little quiet with the U.S. on holiday.

- Continued breakneck rally in Bunds, with 10-Yr yields dropping another 0.2bps,

touching just shy of -0.41% (below ECB depo rate).

- Periphery EGBs have been unable to keep up with Bunds, though wider spreads

look like profit-taking rather than risk-off: Italy 10-Yr BTP 6bps wider of

Germany, with Spain/Portugal/Greece 1-3bps wider. 

- EZ May retail sales surprised to the downside (-0.3% M/M vs +0.4% MNI median

with +1.3% Y/Y the weakest annual figure in 2019).

- Spain and France took advantage of lowest-ever yields across respective

curves, with Bonos/Oblis and OATs seeing solid auctions this morning. 

- Euribor futures trading mixed, short-end 0.5 ticks weaker, with Blues and

Golds picking up 1.5-4.0 ticks. Latest futures prices:

* Sep Bund futures (RX) up 31 ticks at 173.98 (L: 173.61 / H: 174.04)

* Sep BTP futures (IK) down 13 ticks at 138.74 (L: 138.5 / H: 139.8)

* Sep OAT futures (OA) up 38 ticks at 166.56 (L: 166.17 / H: 166.69)