After a risk-off start to the day,......>

EGB SUMMARY: After a risk-off start to the day, helped by further Brexit

uncertainty and North Korean headlines, Bunds have traded sideways in the

afternoon session.

- ECB headlines have been more muted today with the main comments from Villeroy

who has said that a no deal Brexit is not fully priced in and could lead to

market turmoil.

- Bund futures are up 0.37 on the day at 166.03. 10y Bunds yields are down 2.0bp

to -0.048% with Schatz yields down 0.9bp at -0.617%.

- BTPs have underperformed following comments from Conte that the budget would

be expansive with Juncker commenting later that he says worried that the Italian

economy continues to regress. 10y BTP-Bund spreads are 5.1bp wider on the day at

258bp.

- GGBs have marginally outperformed following reports that Greece planned to pay

back some of its IMF aid ahead of schedule. Most peripheral spreads are within a

basis point of yday's close.

- The Euribor strip has flattened and moved higher with Greens/Blues up 2 ticks.