EGBs and rates have steadied after......>

EGB SUMMARY: EGBs and rates have steadied after sharp moves at Monday`s open.

- Following an initial spike higher, Bunds are basically unchanged on the day.

The Dec 18 future is up 1 tick at 159.64, having traded between 159.58-159.91.

- The 2-Yr German yield is unchanged at -0.615%, 5-Yr is up 0.4bps at -0.169%,

10-Yr is up 0.5bps at 0.433%, and 30-Yr is up 0.3bps at 1.069%.

- BTPs likewise off their lows and picking up slightly in the past few minutes,

with the Dec BTP future is down 38 ticks at 122.32 (121.93L-122.97H).

- Italian spreads to Bunds wider by 2.9bps (10-yr), other periphery EGBs largely

flat.

- OAT yields a little higher ; 10-Yr up 0.9bps at 0.794%, underperforming the

curve (2-yr flat).

- Euribor strip flattening, with Whites/Reds off 0.5 ticks, Greens up 0.5-1.

- Eurogroup meeting of Fin / Econ ministers could provide further noise today re

Italy budget, though earlier comments from EU`s Dombrovskis failed to move the

needle very much.

-  ECB VP Guindos speaks in Brussels at 1300GMT.