Core EGBs have outperformed Tuesday,....>

EGB SUMMARY: Core EGBs have outperformed Tuesday, with clients asking over the

course of the day why we have seen moves higher in Bunds and softness in BTPs,

but few specific catalysts to identify.

- Greece 10-Yr spread to Germany narrowed to 341.8bps earlier on Moody's upgrade

Friday, but now at 351bps following news this morning of additional GGB supply.

- BTPs actually began rallying alongside widening Greek spreads. Mar 19 BTP

future last down 4 ticks at 128.32, having traded as low as 127.77 around the

time of Greece issuance news.

- Italy and Greece lagging EGB periphery, with Spain and Portugal 10-Yr spreads

down 0.4/0.8bps vs Bunds.

- Mar 19 Bund future is up 27 ticks at 165.49, with 2-Yr German yield is up

0.5bps at -0.503%, 5-Yr is up 5.8bps at -0.282%, 10-Yr is down 1.3bps at 0.17%,

and 30-Yr is down 0.8bps at 0.807%.

- Tuesday sees Austria sell E1.15bln of RAGBs and Germany follow up with

E0.75bln in BundEi sales.

- Data-wise, Tuesday sees Final Feb EMU PMI data and final Italy Q4 2019 GDP.