BTPs are sharply lower early Monday,....>

EGB SUMMARY: BTPs are sharply lower early Monday, with core EGBs trading fairly

flat.

- The Jun 19 BTP future is down 66 ticks at 128.54, having traded in a range of

128.51-129.34 today. Belly of the Italian curve is underperforming: 2-Yr yield

is up 6.3bps at 0.211%, 5-Yr is up 7.9bps at 1.5%, 10-Yr is up 6bps at 2.564%,

and 30-Yr is up 2.9bps at 3.6%.

- No single clear driver of BTP weakness, though continued headlines re

Rome-Brussels schisms / domestic political discord possibly weighing. 

- Bunds are trading fairly flat, with Jun 19 futures up 5 ticks at 164.44. Jan

industrial data came in weaker-than-expected this morning.

- Periphery spreads are fairly steady with the exception of BTPs of course;

10-Yr Portugal, Spain and Greece spreads less than 1 bps changed vs Bunds in

either direction.

- Pretty light week for EGB issuance by recent standards, though will be a busy

Wednesday with Italy, Portugal and Germany all coming to market.