Bunds hit their highs in the Asian......>

EGB SUMMARY: Bunds hit their highs in the Asian session and after retracing some

of their losses have been moving gradually higher through the European session.

At the time of writing, Bund futures were trading around 0.1 off their highs of

the day.

- Salvini has been on the wires this morning saying again that Italy needs to

spend and cut taxes and that the EU's rules need to be renegotiated. Last night

the Italian government won a vote on security including enhanced powers to curb

immigration.

- BTP spreads are a little tighter but other EGB spreads are little changed on

the day.

- Bund futures are up 0.46 today at 176.68 with 10y Bund yields down -2.6bp at

-0.543% and Schatz yields down -0.3bp at -0.820%.

- BTP futures are up 0.31 today at 139.97 with 10y yields down -3.6bp at 1.528%

and 2y yields down -1.6bp at 0.006%.

- OAT futures are up 0.49 today at 168.41 with 10y yields down -3.2bp at -0.271%

and 2y yields down -0.1bp at -0.739%.