Bunds continued to sell of this.........>

EGB SUMMARY: Bunds continued to sell of this afternoon, whilst BTPs and OATs

consolidated post PMI data gains made this morning. 

- The Mar-19 Bund future is down 44 ticks at 166.07, having traded as low as

165.85 earlier in the afternoon. 

- The Bund curve has steepened slightly, the 2s10s is 2.1bps wider at 69bps. 

- The Mar-19 BTP future is up 13 ticks at 127.41, roughly in the middle of it's

days range.

- The BTP curve has seen slight bull flattening, the 2s10s down 0.7bps. 

- Periphery spreads Vs Bunds have narrowed across the board: BTPs/PGBs spreads

Vs Bunds the standouts, both 4bps lower. 

- Demand for medium term nominal OATs was strong at todays auction with all

covers above 2.5x.   

- Tomorrow will see the final Q4 GDP reading for Germany, as well as February's

IFO Business Climate survey. Eurozone inflation data for January will also be

released and ECB Pres Draghi is expected to speak in Bologna in the afternoon.