Bunds are having a banner day while.....>

EGB SUMMARY: Bunds are having a banner day while periphery EGBs are also

rallying (albeit with wider spreads) Wednesday.

- The belly of the German curve is rallying hard, with the 2-Yr German yield

down 5bps at -0.612%, 5-Yr down 8.3bps at -0.472%, 10-Yr down 7.5bps at -0.09%,

and 30-Yr down 4.7bps at 0.536%.

- German 10-/30-yr yields pushing below Japan`s for first time since 2016.

- BTPs and other periphery instruments are up, but spreads are wider. Jun 19 BTP

future is up 31 ticks at 129.8, but 10-Yr spread vs Bunds is up 5bps.

- Greece underperforming, with 10-Yr spread 6.3bps wider; Spain and Portugal

each out around 3bps.

- French OAT spreads vs Germany under control, just under 1bps wider.

- ECB`s Mersch added to the cavalcade of central bank speak this afternoon

(after Draghi et al this morning), highlight being his comments that the ECB is

unlikely to start buying bank bonds, equities and other assets 'any time soon'. 

- ECB's Villeroy rounds out speakers at 1730GMT.