Core EGBs rallied throughout the day....>

EGB SUMMARY: Core EGBs rallied throughout the day. Weak PMIs in the morning, an

oil sell off in the afternoon, and a MNI sources story underlining the ECB's

concern with slowing growth all added steam to the rally.  

 - The Dec 18 Bund future is just off three-month highs, up 49 ticks at 161.12

having traded in a range of 160.51-161.17 today.

- The 2-year German yield is down 0.8bps at -0.584%, with the 2s10s bull

flattening by 2.7bps to a 10-week low of 91.6bps. The long end of the curve has

outperformed, the 30-year yield down 4.3bps at 0.995%. 

- The Dec-18 BTP future is up 17 ticks at 122.27 after fading earlier gains,

having traded in a range of 121.89-122.91. The short end of the curve has

outperformed with the 2-year yield down 7.9bps at 0.94%. Further along the

curve, the 10-year yield has fallen by 3.7bps and trades at 3.417%.

- 10-year BTP spread v Bunds down 0.2bps at 308.2bps (low today of 298.6).

- French OATs have broadly rallied across the curve with the 10-year yield

outperforming, dropping 3.2bps to trade at 0.716%. The 2-year is currently down

0.8bps at -0.454%.