After a quiet morning for market........>

EGB SUMMARY: After a quiet morning for market moves, the BTP-Bund spreads

widened following headlines from Reuters that Italian Deputy Prime Minister

Salvini said that Italy could break fiscal rules. He is reported to have said

that Italy is "ready to go ahead [breaking the limits] if it is necessary to

create jobs. BTPs initially sold off on the headline and then again half an hour

later when Bloomberg covered the headline. Spreads have since tightened a little

but 10y spreads remain 4.7bps wider on the day at the time of writing with 2y

spreads 8.1bp wider.

- Elsewhere moves have been more muted with a mixed German ZEW and little

surprise in EZ IP or the final prints of German or Spanish inflation prints.

- Bund futures are up 0.13 today at 166.65 with 10y Bund yields down -0.8bp at

-0.79% and Schatz yields down -1.0bp at -0.644%.

- BTP futures are down -0.38 today at 128.99 with 10y yields up 3.9bp at 2.738%

and 2y yields up 8.1bp at 0.698%.

- OAT futures are up 0.15 today at 162.76 with 10y yields down -1.1bp at 0.320%

and 2y yields down -0.2bp at -0.579%.