Core EGBs are a little stronger and.....>

EGB SUMMARY: Core EGBs are a little stronger and Italian BTPs a little weaker,

ahead of a quiet day for data, and US FOMC/Italy's budget in focus.

- The Dec 18 Bund future is up 7 ticks at 157.94, with curve largely flat (5-Yr

is unchanged at -0.03% ahead of Bobl supply this morning).

- Italian BTPs are a little weaker ahead of Thursday's budget agreement

deadline, with 2-Yr yield up 1.6bps at 0.857% and 10-Yr up 2.4bps at 2.902%. 

- Deputy PM Di Maio said Wednesday that a deficit above 2.0% of GDP is 'not a

taboo', following on from his comments Tuesday night that his 5-Star party would

not approve the budget without a 'citizens' income', among other demands.

- French Consumer Confidence in Sep was the weakest since Apr 2016 (94 VS 96 in

Aug). Dec OAT future ticked higher but has reversed, now up 9 ticks on the day

at 150.51. Otherwise, no key EMU data Wednesday.

- The US FOMC's MonPol decision provides the major risk event over the next 24

hours. 25bps hike virtually assured, with focus on any significant deviation on

communication re December hike or dot plot.