Bunds sold off sharply from ~ 1320......>

EGB SUMMARY: Bunds sold off sharply from ~ 1320 GMT with the longer-end

underperforming. The Mar-19 bund trades at 165.73 down from a high of 166.48,

while the 2s30s bund spread has widened to 130.2bp from a low of 126.4bp.

- The French OAT curve has similarly steepened with 2s10s up 4bps from the low

and 2s30s up 3bp. Current yield levels: 2-year -0.458%, 10-year 0.555%, 30-year

1.543%.

- Italian BTPs have sold off throughout the day with the very long-end leading

the charge. The 30-year BTP yield trades at 3.7298% up from 3.625%.

- Spanish government bonds have followed the broader EGB correction, with yield

moves similar to the core. Yields are 2-3.5bp higher on the day.

- Euribor futures are broadly flat in whites and 2.0-3.5 ticks lower in

greens/blues.

- Tomorrow will see the release of February CPI data for the Big 4, ahead of the

flash euro area print which will be published on Friday.