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MARKET INSIGHT

Price Signal Summary - USD Faces Selling Pressure

EGB OPTIONS

Schatz downside structures

BOND SUMMARY

Paring early gains

EGB SUMMARY
EGB SUMMARY: BTPs have recovered earlier losses but remain under pressure, while
core EGBs remain stronger Wednesday.
- The Dec 18 BTP future is down 51 ticks at 121.21, having traded in a range of
120.59-121.34. The 2-Yr yield is up 5.5bps at 1.078%, 5-Yr is up 7.1bps at
2.545%, 10-Yr is up 4.8bps at 3.494%, and 30-Yr is up 3.3bps at 4.039%.
- The spread of 10-Yr Italian BTPs vs Bunds is up 6.8bps at 310.5bps, with
Greece wider yet up 8.8bps at 413.4bps. Spain and Portugal 1-2bps wider.
- Bunds are holding onto gains, Dec18 future up 23 ticks at 160.31, albeit in a
tight trading range of 160.21-160.39.
- Euribor futures fairly flat.
- Equities remain down but have recovered some early losses (DAX down 0.3%).
- EMU Q3 flash GDP came in line this morning, but at 0.2% was weakest since
Q214, and Germany and Netherlands surprised to the downside.
- Eyes on Brexit deal being mooted by UK cabinet this afternoon, and any further
headlines out of Italy (EC confirmed it would publish its opinion on Italy`s
draft 2019 budget on Nov 21).