A quiet European morning session for....>

EGB SUMMARY: A quiet European morning session for EGBs turned into a busier

afternoon following comments from ECB Executive Board member Benoit Coeure that

the ECB is discussing a new TLTRO. He also confirmed that the Eurozone economy

was slowing more (and more broadly) than expected.

- This has seen a general tightening of peripheral spreads. BTP-Bund 10y spreads

are now largely unchanged on the day but had been more than 10bp wider earlier.

The widening had followed comments from Borghi stating that EU elections were

the last opportunity to change the EU, and that Italy would have to leave if

reforms failed.

- The German curve has steepened a little with Schatz yields falling 0.6bp and

Bund yields rising 0.2bp.

- Semi-core spreads are close to flat on the day.