EGBs are higher early Wednesday, with...>

EGB SUMMARY: EGBs are higher early Wednesday, with Thursday's ECB monetary

policy meeting in focus.

- Bunds rallied at the beginning of the European session but fell back sharply,

with no real apparent catalyst for either move.

- Possibly contributing to initial rally was sharp drop in autos stocks after

parts supplier Schaeffler warned on 2020 outlook.

- Jun 19 Bund future last up 27 ticks at 163.23. 2-Yr German yield is down

0.4bps at -0.507%, 5-Yr is down 1.2bps at -0.291%, 10-Yr is down 1.8bps at

0.15%, and 30-Yr is down 1.7bps at 0.787%.

- BTPs a little higher; Jun 19 future is up 13 ticks at 127.07. 5-Star`s Di Maio

reiterated Weds morning that the government `is not at risk` over dispute over

Italy-France rail project, though decision must be made by Friday.

- Portuguese and Spanish spreads are flat, Greece 10-Yr is 3.2bps wider at

357.4bps as market digests Tuesday`s successful 10-Yr syndication.

- First Notice day on Eurex futures is Thursday; we'll post a roll update later.

- No data/speakers of note Wednesday, ECB up Thursday of course.