Core EGBs are weaker but Italian BTPs...>

EGB SUMMARY: Core EGBs are weaker but Italian BTPs continue to push higher in

fairly quiet trading Thursday.

- Trade is subdued in part due to holidays across Europe (All Saints' Day).

- The Dec 18 Bund future is down 34 ticks at 159.92, having traded in a range of

159.75-160.27 today.

- A bit of bear steepening on the German curve, 2-Yr yield up 0.5bps at -0.613%,

10-Yr up 2.4bps at 0.409%, and 30-Yr up 2.1bps at 1.041%.

- BTPs stronger across the curve, with significant bull steepening: The 2-Yr

yield is down 9.6bps at 0.962%, 5-Yr is down 9bps at 2.381%, 10-Yr is down

7.4bps at 3.353%, and 30-Yr is down 4.8bps at 3.914%.

- No real developments in the Rome-Brussels budget deadlock; Italy PM Conte

reiterating that dialogue was not an 'exchange of concessions'.

- Euribor a little weaker, Green/Blue contracts off 1.5-2.0 ticks.

- Thin Eurozone data ahead of Friday's flash Oct PMI; UK BOE decision at midday

GMT and US PMI data eyed later.