/EGB AND GILT SUMMARY: BTPs are weaker........>

BONDS: /EGB AND GILT SUMMARY: BTPs are weaker while Gilts and Bunds are slightly

stronger early Wednesday.

- BTP spreads have widened as ECB Chief Economist Peter Praet poured cold water

on widespread expectations for new TLTROs to be announced in March.

- Mar 19 BTP future is down 43 ticks at 127.46, low of 127.31 earlier.

- Italy 10-Yrs stand out among EMU periphery, with spread out 5.6bps at 273.9bps

vs Bunds; Portugal 3bps wider at 143.3bps.

- 10-Yr cash Bund outperforming on the German curve, down 1bps at 0.095%.

- On issuance front, Germany allotted E3.2bln in 0.00% Apr-24 Bobl, real cover

of 1.27x above last 5-yr re-open (0.96x technically uncovered).

- Also, ESM announced RFP for a bond syndication in week of Feb 25.

- The defection of 3 MPs from the UK Conservatives and related risks to the

political outlook helped Gilts edge higher; Mar 19 future up 11 ticks at 124.11.

- Eurozone Feb consumer confidence (1500GMT) the only data highlight in Europe

for the rest of the day, with FOMC Jan meeting minutes (1900GMT) likely to

garner more attention.