Core EGBs have gained today with the....>

EGB SUMMARY: Core EGBs have gained today with the peripheries suffering as

risk-off sentiment begins to take hold across Europe. 

- French Industrial Production data today showed an unexpected decline, -1.3% Vs

est 0.0%, whilst European bourses have broadly traded in the red. 

- French OAT yields have dropped around 2.5bps across the 2yr/5yr section,

whilst the long and ultra long end has seen yields fall up to 3.5bps.  

- The Mar 19 Bund future is up 36 ticks at the top of it's range at 164.32,

having traded as low as 163.93 today.

- The long end of the curve has driven the rally, the 10-yr yield 3bps at

0.249%, causing a 2.2bps flattening in the 2s10s to 84bps. 

- The 2-Yr Bund yield is down 0.8bps at -0.592% with 5-Yr down 2.2bps at

-0.352%.

- MNI reported today at 1116GMT that nationalising Carige is only only a 'last

ditch solution' for Italy and state control may include a E4.0bln bridge loan. 

- The Mar 19 BTP future is down 11 ticks at 126.18, with the curve trading

largely flat through the 2s10s.