Bunds have turned lower in a choppy.....>

EGB SUMMARY: Bunds have turned lower in a choppy day of trading, with periphery

spreads tighter.

- Italian spreads narrower, in 10-Yr 4.6bps in to Bunds at 244.6bps. MNI, Ansa

and Reuters reported Italian gov't trying to seal a deal over public finances

with Brussels, eyeing G20 meetings for progress.

- Long-end underperforming in core Eurozone; supply possibly weighing but Bunds

have basically been tracking US Tsys for the most part.

- Hearing also of some exits from Bund/BTP wideners.

- Austria syndicated E4.5bln in RAGB today (upsized from E3bln). Sold E3.25bln

in new 5-Yr benchmark 0.0% Jul-24 and E1.25bln in the 2.1%Sep-2117 century bond

(Austria retained E250mln of each).

- Euribor and Short Sterling strips off slightly (-1.5/2 ticks).

- Latest EGB futures prices:

* Sep Bund futures (RX) down 42 ticks at 172.46 (L: 172.38 / H: 172.82)

* Sep BTP futures (IK) up 25 ticks at 133.77 (L: 132.97 / H: 133.87)

* Sep OAT futures (OA) down 33 ticks at 164.59 (L: 164.49 / H: 164.87)