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Core bonds have generally been on the...>

EGB SUMMARY
EGB SUMMARY: Core bonds have generally been on the front foot today and Bunds
have been no exception, with yields falling less than USTs but more than gilts,
which were the driver this morning.
- The main story for EGBs has been the headlines from Italy that Deputy PMs
Salvini and Di Maio are due to meet to discuss whether to replace Conte as PM.
Salvini has since stated that he has no meeting planned with Di Maio but BTPs
are the underperformers in EGB space today with 10y spreads to Bunds widening
7.6bp at the time of writing, back above 200bps.
- Earlier today an MNI sources story said that the ECB "is likely to revise its
forward guidance at its meeting on Thursday, making it clearer that the next
adjustment to interest rates will be downwards but holding off any immediate
stimulus moves"
- Bund futures are up 0.30 today at 173.69 with BTP futures down -0.60 at 138.46
and OAT futures up 0.12 today at 165.85.

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