Core EGBs have continued to drift.......>

EGB SUMMARY: Core EGBs have continued to drift sideways throughout the morning

with focus on the ECB decision tomorrow and the upcoming UK confidence vote this

evening.

- The Mar-19 Bund future The Mar 19 Bund future is down 7 ticks at 163.41,

having traded in a range of 163.2-163.53 today. 

- The Bund cash curve has seen underperformance at the short end with the 2-Yr

yield up 0.7bps at -0.594%, 5-Yr up 0.4bps at -0.296%, and 10-Yr up 0.4bps at

0.236%. 

- Looking at the peripheries, news has emerged that the Italian government has

agreed on a new fiscal budget and will be heading to Brussels today with 'good

intentions'. 

- The Mar-19 BTP future 64 ticks at 124.31, having making highs of 124.37 so far

today.

- The BTP 2s10s has traded flat throughout the day, with the 30-Yr yield

underperforming. The 2-Yr yield is down 6.2bps at 0.599%, 5-Yr is down 6bps at

2.103%, 10-Yr is down 6.3bps at 3.059%, and 30-Yr is down 3.1bps at 3.649%.