Core EGBs look to finish Thursday.......>

EGB SUMMARY: Core EGBs look to finish Thursday stronger following earlier

losses, following a largely uneventful ECB GC decision and press conference.

- ECB President Draghi provided clarification that English is the official

version of ECB communications and that ambiguous foreign language translations

of rates remaining on hold until `at least through summer 2019` should be

interpreted in that light. He also reiterated that the capital key is the anchor

for APP reinvestments, which could be interpreted as Bund-positive.

- Bunds rallied throughout the Q&A, with the Sep8 future rising from 162.03

pre-decision, to as high as 162.37; last trading 162.31, down 6 ticks.

- Periphery yields had relatively little reaction, though spreads widened as

Bunds edged higher. 10-Yr BTP yields at 2.691% are down 2.7bps from the high but

up 1.3bps on the day. Spread over Bunds 1.7bps wider at 229.9bps.

- Euribor strip has bear steepened; short-end flat while Blues up 2.0-2.5 ticks.

- Very modest decline in ECB hike expectations according to MNI PINCH; Oct-19

still the first month in which 10bps of hikes are priced in.

- With EGB supply and ECB out of the way this week, US & French GDP eyed Friday.