BTPs are rallying alongside decent......>

EGB SUMMARY: BTPs are rallying alongside decent Italian data Tuesday, while

Greece is enjoying healthy demand for its new 10-Yr Benchmark.

- Mar 19 BTP future is up 39 ticks at 128.81, with the 10-Yr spread vs Bunds

down 6.3bps at 251.7bps.

- Driving the rally was Italy Feb Services PMI at 50.4 beating the MNI Median of

49.4 and 49.7 in January; also Q4 final GDP revised up 0.1pp to -0.1% Q/Q.

- Yields lower across the Italian curve, with 2-Yr yield down 4.1bps at 0.299%,

5-Yr is down 4.4bps at 1.623%, 10-Yr is down 4.1bps at 2.697%.

- Spanish and Portuguese 10-Yr spreads also tighter, down 3.5-4.0bps on the day.

- Greece spreads steady despite decent demand for new Mar-29 10-Yr benchmark

(books in excess of E11.3bln), final yield 3.90%.

- Futures rolling continues apace; will provide an update around 1230GMT.