Core EGBs have eased so far on ECB......>

EGB SUMMARY: Core EGBs have eased so far on ECB Day, as equities have gained

some footing, with Italy outperforming after three consecutive down days.

- Risk is slightly more `on` amid a 1+% bounce in French, Spanish, and Italian

stocks; German equities lagging.

- The Dec 18 Bund future is down 7 ticks at 160.11,  well off early high of

160.33 today. Curve is fairly flat with short end underperforming: 2-Yr yield is

up 0.5bps at -0.616%, 10-Yr is down 0.2bps at 0.394%.

- French OATs fairly flat, Dec18 future off 1 tick at 151.69.

- Italian BTPs are enjoying something of a relief rally, with the Dec18 future

up more than 100 ticks and 10Yr spread vs Germany down 9.5bps at 311.5bps. 

- Other periphery EGB spreads lower too, Spain in 4.1bps at 118.8,bps, Portugal

down 4.5bps at 153.9bps, and Greece in 8.2bps at 382.2bps.

- Euribor a little heavier further down the strip (Blues off 0.5-1.0 ticks), but

otherwise unremarkable as ECB awaited.

- No surprises expected from ECB GC meeting announcement, all eyes on the press

conference.