A few abridged sell-side takes on the.......>

GERMANY: A few abridged sell-side takes on the court decision on PSPP expected

around 0900BST. Consensus is a negative decision = wider periphery spreads:

- MS: "In the unlikely scenario the court votes against PSPP, peripheral spread

widening/EUR weakness over the course of the day should be expected."

- ING: "Given that few expect the court to curtail PSPP altogether, we should

see only a modest relief sell-off in Bund when the decision is published. Worse,

we see room for a temporary widening of sovereign spreads if it adds

restrictions on bond purchases. To be sure, the court does not have jurisdiction

beyond Germany but its ruling cannot be ignored by the ECB."

- Deutsche: "court could remind the euro area (and markets) that the question of

the BBk's participation in future risk mutualisation shouldn't be taken for

granted even as they'll likely accept PSPP... Whilst it would be a major shock

to see a negative ruling the court could still define some conditions re PSPP"

- Nordea: "the court has historically been critical in past similar decisions

and a negative outcome would limit the flexibility of the purchases and cause

adverse moves in peripheral bond spreads."