A muted afternoon session in EGBs.......>

EGB SUMMARY: A muted afternoon session in EGBs following a decent start in the

early London session. -German National CPI came in a touch weaker, but had

limited impact on EGBs. 

-Bund had a little spike, following IMF Lagarde mentioning that the ECB were far

from its lower bound in interest rate. 

-Looking deeper into the comments, not much new in the extensive Lagarde

testimony, apart from the fact that Draghi could have written much of the

testimony himself. 

- Bunds then had a 30 ticks drop to test low of the day, following Hawkish

comment from ECB Knot, favouring a "no need" in QE. Knot is a known hawk and

probably not representing the dominant ECB view on QE so not wholly surprising,

so EGBs have once again faded the initial move. -BTP printed an impressive 150

ticks range today, touching 0.917% low in yield terms. We are well off the highs

at the time or writing trading mid range at 146.21 (low: 145.64, high: 147.15) .

 -Peripheral saw Greece and Italy as the standout bonds with the spread against

Germany printing at 222.6bps and 164.1 respectively