BTPs are falling sharply while core.....>

EGB SUMMARY: BTPs are falling sharply while core EGBs are up slightly early

Tuesday.

- The Dec 18 BTP future is down 105 ticks at 119.47, having traded in a range of

119.36-120.64 today.

- The 2-Yr yield is up 8.8bps at 1.473%, 10-Yr is up 10.5bps at 3.702%, and

30-Yr is up 6.5bps at 4.157%. 10-Yr spread out 10.7bps at 333.1bps

- More commentary from Deputy PM Di Maio, saying the EU is acting like a

'stonewall' against Italy, and that while a deal can be reached with Brussels,

it 'must not' include removing the main measures in the budget.

- Dec 18 Bunds are up 11 ticks at 160.71, having traded in a tight range of

160.54-160.74. The 2-Yr yield is down 0.8bps at -0.592%, 5-Yr is down 0.8bps at

-0.23%, 10-Yr is down 1bps at 0.363%, and 30-Yr is down 1.2bps at 1.036%.

- Euribor futures are trading fairly flat, Blues up 0.5-1.0 ticks.

- On the supply front, Finland issues RFGBs later this morning for E1.0bln.

- ECB speakers today include Weidmann and Nouy.