Core EGBs have turned lower after.......>

EGB SUMMARY: Core EGBs have turned lower after early gains Wednesday, ahead of

Italian and German issuance, and Eurozone confidence data.

- The Mar 19 Bund future is down 4 ticks at 166.23, having dropped sharply from

early high of 166.44. 2-Yr yield is up 0.5bps at -0.531%, 5-Yr up 0.2bps at

-0.326%, 10-Yr up 0.2bps at 0.12%.

- Issuance today includes Germany selling Feb-29 Bunds and Italy Oct-23 and

Aug-29 BTPs, as well as Jan-25 CCTeu. This comes against the backdrop of strong

sales in recent weeks including Spain 15-Yr syndication Tuesday.

- BTPs a little weaker (Mar 19 future down 10 ticks), with bear steepening in

the cash curve: 2-Yr yield up 0.7bps at 0.342%, 10-Yr up 1.6bps at 2.72%.

- 10-Yr yield vs Germany up 1.3bps at 259.9bps. Periphery spreads otherwise

mixed: Spain 0.8bps wider, Portugal down 0.2bps.

- Greece also tighter by 0.7bps; Reuters reported Tues that Athens may be

considering another bond sale next month.

- ECB's Coeure speaking now on counterparty risk. Weidmann speaks at 1000GMT.

- Also at 1000GMT is EMU Feb Bus./Cons. Confidence.