BTPs are soaring on a possible..........>

EGB SUMMARY: BTPs are soaring on a possible Italy-EU budget detente, while core

EGBs are slightly weaker, ahead of the ECB decision later Thursday.

- ECB decision and Draghi presser are today's highlight, very likely to mark the

end of net asset purchases. Full preview at link below (or contact us):

* http://marketnews-m.objects.xtenit.com/MNI_ECB_Preview_December_2018.pdf *

- The Mar 19 Bund future is down 24 ticks at 162.74, having traded in a range of

162.51-162.82 today. The 2-Yr yield is up 0.4bps at -0.561%, 5-Yr is up 0.5bps

at -0.247%, 10-Yr is up 0.3bps at 0.282%, and 30-Yr is up 0.2bps at 0.864%. 

- Italy PM Conte said this morning that Italy proposed a 2.04% of GDP deficit

next year, with a minister relling Reuters the savings from original target come

from 'revised citizen income and pension reform'.

- 2-Yr BTP yield is down 9.2bps at 0.487%, 5-Yr is down 9bps at 1.971%, 10-Yr is

down 6bps at 2.94%. 10-Yr / Bund spread down 6.7bps at 265.6bps.

- Greece leading falls in other EGB spreads, 10Y down 5bps v Bunds at 394.2bps.

- French OAT spreads continue to recede; 10-Yr/Bund down 0.8bps at 44.8bps.

- SNB held rates, sounded on dovish side, little immediate reaction.