Core EGBs remain bid following the......>

EGB SUMMARY: Core EGBs remain bid following the Bank of England decision (no

material change to the statement, but the 2019 growth forecast was cut to 1.2%

from 1.7%) and the European Commission's downbeat assessment of global economic

conditions.

- German bund yields are down 2-4bps on the day with the longer end of the curve

outperforming. Current yield levels: 2-year -0.582%, 10-year 0.119%, 30-year

0.725%. The 2s10s spread has narrowed to 69.3bps from a high of 71.6bps.

- French OAT yields are trading at fresh lows for the day, with little change in

the curve.

- Italian BTPs have been the big underperformers on the day, having suffered at

the hands of a significant economic growth downgrade for 2019 by the EC (0.2%

from 1.2%). The belly of the curve has been particularly hard hit with the

5-year yield trading up 9.2bps on the day.

- Spanish government bonds have fared better with longer-end yields down 2bps

from the highs.

- Euribor futures are 0.5-3.5 ticks higher reds-blues.