BTPs are the big mover in EGBs as.......>

EGB SUMMARY: BTPs are the big mover in EGBs as reports of Rome striking an

informal budget deal with the EU has seen yields fall to 3-month lows, though

much of the deal was already priced in.  

- The Mar-19 BTP future is up 148 ticks at 126.9, having traded in a range of

126.05-127.45 today.

- The BTP cash curve has steepened as yields have fallen with the belly being

the days early outperformer. The 2-Yr yield is down 10.7bps at 0.442%, 5-Yr is

down 13.1bps at 1.849%, 10-Yr is down 13.6bps at 2.802%, and 30-Yr is down

6.6bps at 3.537%.  

- Italy's budget agreement seems to have had no major knock on effect so far,

but it is notable that 10-Yr spread Vs Bunds is down across the periphery's.

- The Mar 19 Bund future is up 1 ticks at 163.35, having traded in a range of

163.25-163.61 today.

- Little change across the German cash curve, the biggest move is in the 5-Yr

where yields have risen by 0.7bps to -0.287%.  

- German PPI data today was better than expected, but no market reaction.