BTPs are off day`s highs but still......>

EGB SUMMARY: BTPs are off day`s highs but still much stronger Monday, following

Fitch`s decision Friday to hold fire on a ratings downgrade.

- Mar 19 BTP future is up 85 ticks at 128.24 (128.54 intraday high).

- 2-Yr yield leading curve rally, down 10.8bps at 0.406%.

- Spread of 10-Yr BTPs vs Bunds is down 8.5bps at 266.6bps. Low near 263bps.

- Meanwhile, Mar 19 Bund futures down 18 ticks at 166.44, near middle of day`s

range. 2-Yr German yield is up 0.6bps at -0.559%, 10-Yr is up 0.9bps at 0.105%.

- Spain/Portugal/Greece 10-Yr spreads to Bunds down 2-4bps.

- New Spanish 15-Yr benchmark mandate announced earlier (will be a Jul-35).

- A pair of MNI Sources stories published today. First, ECB could streamline

rate guidance over the next few months, cutting "through the summer of 2019",

but emphasising "as long as necessary" (1206GMT).

- Second, some in ECB concerned that slow growth is the "new normal" (1347GMT).

- ECB speakers feature Tuesday, with Lane, Mersch and Visco all due to appear.

- Slow start to the week for data; Tuesday sees consumer confidence data for

Germany (March) and France (February).