Core EGBs and periphery bonds alike.....>

EGB SUMMARY: Core EGBs and periphery bonds alike are trading higher, with solid

French and Spanish auctions and news from Salzburg summit awaited.

- The Dec 18 Bund future is up 10 ticks at 158.72, having traded in a range of

158.58-158.78 today. The German curve has bull flattened slightly, with the 2-Yr

yield down 0.1bps at -0.526%, 5-Yr down 0.2bps at -0.097%, 10-Yr down 0.5bps at

0.482%, and 30-Yr down 0.3bps at 1.14%.

- Market source reported Bobl vs Buxl trades via blocks (5.2k OEZ8 vs 1k UBZ8,

though hard to determine whether steepener or flattener). 

- On supply front, two healthy auctions this morning. France sold E7.494bln of

OATs vs E6.5-7.5bln target, with Spain selling E4.448bln vs target E4.0-5.0bln.

- Periphery EGBs trading tighter to Bunds. Spread of 10-Yr Italian BTPs

outperforming, down 3.7bps at 232.8bps, Spain down 2.7bps at 101.3bps, Portugal

down 2bps at 138.5bps, and Greece down 4.7bps at 357.2bps.

- ECB speakers later include Weidmann (1515GMT) and Praet (1720GMT).