A fairly quiet day for EGBs with an.....>

EGB SUMMARY: A fairly quiet day for EGBs with an interesting speech from ECB's

Schnabel. She set her speech into the sections that were effectively asked for

by the German Constitutional Court. She first explained why the PEPP was

necessary, then why it was suitable then why it was proportionate. Her

concluding remarks stated that "Without the PEPP, we would probably have found

ourselves by now in the middle of a severe financial crisis with unforeseeable

consequences for the economy, employment and price and wage developments in the

euro area."

- Bunds are unchanged on the day after coming off their highs while BTP spreads

have tightened following this morning's strong auction. ** Latest levels:

* Sep Bund futures (RX) up 1 ticks at 176.67 (L: 176.47 / H: 176.86)

* Germany: The 2-Yr yield is down 0.3bps at -0.694%, 5-Yr is down 0.6bps at

-0.709%, 10-Yr is down 0.6bps at -0.476%, and 30-Yr is down 0.7bps at -0.028%.

* Sep BTP futures (IK) up 55 ticks at 143.88 (L: 143.1 / H: 143.98)

* Italy / German 10-Yr spread 4.9bps tighter at 171.9bps

* Sep OAT futures (OA) up 4 ticks at 167.76 (L: 167.59 / H: 167.95)