Confirming the trend in industrial.....>

BOND SUMMARY: Confirming the trend in industrial production across Europe for

December, the Italian IP print came in far below expecations (-1.4% WDA Y/Y, vs

-0.4% survey.

- CDU leader Annegret Kramp-Karrenbauer has indicated that she will stand down

later in the year.

- Hints of a possible 'mansion tax' and reduction in pension relief for higher

earners in the UK has caused a stir among Tory grassroots. The government is

also reportedly looking into sites for 10 near free ports in a bid to 'level up'

the UK economy and rebalance away from London.

- Gilts trade close to flat on the day in the absence of data or material news

flow. Current yield levels: 2-year 0.491%, 5-year 0.423%, 10-year 0.568%,

30-year 1.083%.

- Bunds have traded firmer with the longer end marginally outperforming.

- French OAT yields are up to 2bp lower on the day. 

- Italian BTPs are a toucher weaker albeit with yields near Friday's close.