Core EGBs are continuing Tuesday's......>

EGB SUMMARY: Core EGBs are continuing Tuesday's rally, with equities down.

- Mar19 Bunds continue to strengthen, with the 2-Yr yield down 1.9bps at

-0.632%, 5-Yr down 2.2bps at -0.322%, 10-Yr down 1.9bps at 0.244%, and 30-Yr

down 2bps at 0.893%. 10-Yrs have hit lowest yields since May.

- Periphery EGBs are rallying as well, though spread movements have been mixed. 

- Mar 19 BTP future is up 29 ticks at 123.44, 10-Yr yield down 2bps at 3.136%.

Corriere reported earlier that Fin Min Tria is tempted to resign as he is said

to be sidelined in the EU budget negotiations by PM Conte.

- 10-Yr BTP spread flat to Bunds; 10-Yr Spanish bonds 1.4bps wider at 123.7bps,

Portugal out 1.4bps at 156.2bps, Greece out 1.6bps at 399.2bps.

- EGB issuance for the week kicks off today with Spain selling E2.5-3.5bln of

Bonos/Oblis. Portugal this morning exchange 2 and 3 yr PGBs for 5 and 9 yrs.

- ECB speak this morning includes Draghi, Nouy and Lautenschlager.

- Nov services PMIs the data highlight, with EMU retail sales also featuring.

- Trading could be subdued, with the US Equity/Interest rate markets closed for

a national day of mourning for former Pres. George H.W. Bush.