Core EGBs have traded largely...........>

EGB SUMMARY: Core EGBs have traded largely sideways this morning with focus on

the ECB decision in just under an hour where an end to net asset purchases is

expected to be announced at 1245GMT.

- The Mar 19 Bund future is down 9 ticks at 162.89, having traded in a range of

162.51-162.97 today.

- The 2-Yr yield is down 0.9bps at -0.574%, 10-Yr down 0.7bps at 0.272%.

Italian BTPs lead the way for periphery EGBs, rallying off news this morning

that they will propose a budget deficit of 2.04% to the EU in Brussels today.   

- The Mar 19 BTP future is up 112 ticks at 126.04, having traded in a range of

125.27-126.14 today.

- The belly of the Italian cash curve has outperformed, the 5-Yr yield down

16.6bps at 1.895%. The 2s10s curve has steepened by 1bps with the 2-Yr yield

down 11.7bps at 0.462%, 10-Yr is down 10.7bps at 2.893%.  

- Both Norges Bank and the SNB held rates today. SNB erred on the dovish side

whilst Norges Bank said there was a 10% chance of a January hike, compared to

90% in March.