EGBs are fairly steady alongside........>

EGB SUMMARY: EGBs are fairly steady alongside reeling equity markets, with the

ECB Governing Council decision due up later.

- Following Wednesday's gains, the Dec 18 Bund future is up 4 ticks at 160.22,

trading in a fairly narrow 160.10-160.33 range thus far. 

- Slight German curve bull flattening, 2-Yr yield down 0.3bps at -0.624%, 5-Yr

down 0.9bps at -0.196%, 10-Yr down 1.1bps at 0.385%,30-Yr down 1.2bps at 1.015%.

- BTPs on the front foot to start the day: Dec 18 future up 49 ticks at 120.16,

though off 120.37 high.

- 10-Yr BTPs spread vs Bunds down 2.3bps at 318.6bps; spreads on rest of EGB

periphery fairly flat.

- ECB decision 1145GMT conference at 1230GMT as usual.

- No major policy developments are likely, focus will be on the language around

the economic outlook and specifically underlying inflation given Draghi's

previously upbeat assessment of price pressures (contact us for preview).

- Market looking for any clarity on reinvestment policy and the capital key.

- Also, Germany Oct IFO business climate data out at 0800GMT.