Bunds are higher and BTPs are lower.....>

EGB SUMMARY: Bunds are higher and BTPs are lower against a backdrop of lower

equities, and as details of the Eurogroup meeting are digested.

- The Dec 18 Bund future is up 33 ticks at 161.83, with the 2-Yr yield down

0.7bps at -0.611%, 5-Yr down 1.5bps at -0.289%, 10-Yr down 2.2bps at 0.284%, and

30-Yr down 3bps at 0.947%.

- Reports this morning that Italy PM Conte tells Italian newspaper Avvenire he

will present budget proposal to avoid EU disciplinary procedure "in next few

hours", with 'lower deficit than previously planned".

- But after jumping higher at the open, BTPs have weakened: Dec 18 future down

16 ticks at 125.25, having traded in a range of 125.17-125.58.

- Early draft of Eurogroup deal reached overnight seen by FT and others appears

to contain a stabilisation function with 'possible budgetary instruments' for

stabilisation as advocated by the French but opposed by others (ie Netherlands).

- No ECB speakers today; Draghi, Nouy and Lautenschlaeger up Wednesday.

- Eurozone PPI out at 1000GMT. Producer prices grew by 4.5% y/y in September,

after growth of 4.3% in August.