After 10y Bund yields hit new lows......>

EGB SUMMARY: After 10y Bund yields hit new lows earlier today as the risk-off

tone continued in markets, EGBs have stabilised a little ahead of the ECB later

today.

- The ECB rate announcement will be published at 12:45BST along with any update

to forward guidance. The details of TLTRO III are likely to remain under wraps

until Draghi's press conference begins at 13:30BST. We think that market

participants are looking for the pricing to be at a discount of 20bp below the

refi rate. The ECB's new staff projections will also be announced during today's

press conference.

- Bund futures are up 0.12 today at 171.28 with 10y Bund yields down -0.2bp at

-0.229% and Schatz yields up 0.5bp at -0.682%.

- BTP futures are up 0.24 today at 130.01 with 10y yields up 1.3bp at 2.481% and

2y yields down -1.9bp at 0.502%.

- OAT futures are up 0.43 today at 163.06 with 10y yields down -2.5bp at 0.127%

and 2y yields unch at -0.616%.