All the action in EGBs has come from....>

EGB SUMMARY: All the action in EGBs has come from Italy today as BTPs have

continued their rally throughout the afternoon on the back of news that the EU

will follow through with an excessive deficit procedure against Italy. 

- The Mar 19 BTP future is up 150 ticks at 126.92, having traded in a range of

126.05-127.45 today.

- The 2s10s has bull flattened by 4.9bps, whilst the very long end of the curve

has underperformed causing a bull steepening in the 2s30s.

- The 2-Yr yield is down 7.2bps at 0.477%, 5-Yr down 12.1bps at 1.859%, 10-Yr

down 13.5bps at 2.803%, and 30-Yr down 5.2bps at 3.551%. 

- Bunds have lacked direction, trading sideways throughout the day with 30-Yr

yields the biggest mover by gaining 0.8bps to 0.868%. 

- The Mar 19 Bund future is up 3 ticks at 163.37, having traded in a range of

163.24-163.61 today.

- Despite BTP gains today other peripheries have failed to make moves: Ssanish

10-Yr spread Vs Bunds is is up 0.3302bps at 113.7bps, whilst the Portuguese

10-Yr spread Vs Bunds rose 1.2bps to 140.3bps.