A mid-morning risk-on rally across......>

EGB SUMMARY: A mid-morning risk-on rally across equities and commodities has

helped keep EGBs on the back foot. 

- The Mar 19 Bund future is down 41 ticks at 162.99, having traded in a range of

162.83-163.26 today. The 2-Yr yield is down 0.1bps at -0.578%, 5-Yr is up 1.2bps

at -0.271%, 10-Yr is up 1.8bps at 0.264%, and 30-Yr is up 2.5bps at 0.866%.

- German Dec ZEW figures this morning came in above consensus; overall sentiment

at -17.5 (Nov -24.1); above median expectation of -26.0.

- Strong move higher in equities dragging on core EGBs; Euro Stoxx up 1.7%.

- Mar 19 BTP futures down 30 ticks at 123.52. Reuters reported that PM Conte was

unlikely to suggest a new deficit target at a meeting Wednesday w EU's Juncker.

- EGB spreads generally wider; Ireland 10-yr / Bunds rose as high as 69.2bps

(highest since May) on no-deal Brexit concerns, last up 0.6bps at 67.3bps.

- French OATs/Bunds out 1.7bps at 46.5bps; around 19-month highs. EU's Moscovici

cited by AFP saying EU would watch Macron fiscal plan's impact on the deficit.