Bunds have moved largely in line with...>

EGB SUMMARY: Bunds have moved largely in line with USTs this morning ahead of

the FOMC decision later as US-China trade talks are reported to have yielded no

breakthrough.

- Reports this morning had suggested that Salvini could push for early elections

in 2020. BTPs spreads have tightened a little but less than other peripherals.

- The biggest movers on the day are Irish bonds and spreads have tightened

4.6bps for the 10y at the time of writing. This merely reverses some of the

widening moves we have seen over the past few days on no deal Brexit concerns.

- Bund futures are up 0.15 today at 174.70 with 10y Bund yields down -1.2bp at

-0.413% and Schatz yields down -0.3bp at -0.770%.

- BTP futures are up 0.22 today at 139.56 with 10y yields down -2.5bp at 1.559%

and 2y yields down -1.5bp at -0.14%.

- OAT futures are up 0.14 today at 166.90 with 10y yields down -1.4bp at -0.157%

and 2y yields down -0.9bp at -0.705%.