Bunds have steadied after early.........>

EGB SUMMARY: Bunds have steadied after early volatility Tuesday with BTPs lower

as risk off sentiment picks up across markets. 

- The Mar-19 Bund future is up 26 ticks at 161.76 having traded in a range of

161.61-161.93 (the latter hit on the open). 

- The 2-Year Bund yield is down 0.2bps for the day at -0.606%, with bigger falls

being seen further along the cash curve: 5-Yr down 1.0bps at -0.284%, 10-Yr down

1.7bps at 0.289% and 30-Yr down 2.9bps at 0.948%. 

- The Mar-19 BTP future is now down 31 ticks at 125.10 despite PM Conte

seemingly flying the white flag in Rome's budget standoff with Brussels. 

- The short end of the curve has underperformed so far with the 2-Yr BTP yield

up 1.8bps at 0.683%, 5-Yr up 1.7bps at 2.176%, 10-Yr up 1.4bps at 3.159%, and

30-Yr up 1.5bps at 3.79%.

- Elsewhere across Europe 10-Yr spreads Vs Bunds have widened, with spread of

10-Yr Spanish bonds up 2.8bps at 121.4bps, Portuguese up 2.1bps at 151.9bps.

- The Euribor futures strip is flattening, with Blues up 1.5-2.0 ticks and

Whites and Reds largely anchored.