BTPs have recovered earlier losses......>

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).