BTPs have partially given up early......>

EGB SUMMARY: BTPs have partially given up early gains and core EGBs are off

day's lows, with the net result being little change in EGBs Monday.

- Periphery spreads are a little tighter, but Italy has gone from outperformer

this morning to laggard: 10-Yr BTP/Bunds down 1.5bps, whereas Spain and Portugal

are 3.6bps / 3.0bps tighter, respectively.

- Italy weakness has persisted steadily all day. Bunds in contrast have had two

sharp moves lower: first as London came in, second following US income/spending

figures at 1330BST. Latter move has faded, however.

- Q1 GDP set to feature on Tuesday, with France, Spain, Italy and the

pan-Eurozone first est. Belgium first to report, roughly in line this afternoon.

- EGB supply Tuesday includes Italy and Germany.

- Euribor futures are a little weaker, off 0.5-1.0 ticks across the strip.

- Latest futures prices:

* Jun Bund futures (RX) down 28 ticks at 165.54 (L: 165.33 / H: 165.84)

* Jun BTP futures (IK) down 6 ticks at 130.25 (L: 130.12 / H: 130.95)

* Jun OAT futures (OA) down 16 ticks at 162.07 (L: 161.8 / H: 162.25)