BTPs have had a bit of a................>

EGB SUMMARY: BTPs have had a bit of a rollercoaster opening to Thursday, with

core EGBs a little stronger.

- BTPs initially shot higher as Il Messaggero reported that Lega was open to

changing the budget law, with 5-Star opposed; Lega's Salvini emerged later to

say the government would not backtrack on the budget law.

- Dec 18 future down 19 ticks at 121.26, having traded between 121.19-121.85.

The 2-Yr yield is up 3.9bps at 1.17%, 10-Yr is up 4.5bps at 3.516%.

- Meanwhile German yields are a little lower, with 2-Yr down 0.2bps at -0.582%,

10-Yr down 1.4bps at 0.362%. Bund future is up 15 ticks at 160.73 (trading in a

narrow 13 tick range so far).

- EGB periphery spreads a little wider; 10-Yr BTPs out 6.1bps at 315.6bps;

Spain, Portugal, Greece wider by 1.3-1.9bps apiece.

- Apart from Italy, attention on the Brexit summit on Sunday, after UK PM May's

meeting with EU's Juncker Wednesday failed to deliver a final agreement.

- A number of ECB speakers are due, with Angeloni, Weidmann, Knot, Visco and

Mersch all scheduled Thursday; ECB meeting accounts published 1230GMT.