Adam Bosomworth at Pimco writes that he....>

ECB VIEW: Adam Bosomworth at Pimco writes that he expects a E30bln of purchases

for nine more months from the ECB announcement later today but, "without

committing to a specific end date".

- Pimco sees a first hike in the depo rate with a 15bp move in mid-2019.

- In terms of investment implications "With limited term premia in the front end

of the yield curve, and risks tilted more to a hawkish than a dovish ECB outcome

if our baseline is wrong, we expect to be slightly underweight duration overall"

- Bosomworth mentions that the Bundesbank is already lengthening the maturity of

its Bund purchases as shorter maturity bonds hit issuer limits and he sees this

continuing into 2018 "supporting the long end of the Bund curve".

- Finally, Bosomworth concludes that monetary policy will be neutral for

periphery-Bund spreads. There is less overall buying but reinvestment flows

"marginally benefit France and Italy owing to the higher share of Bunds held in

the portfolio that will mature next year."