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EGBs are on the back foot, with.........>

EGB SUMMARY
EGB SUMMARY: EGBs are on the back foot, with Italian BTPs off on news that Fin
Min Tria has threatened to quit, and Bunds weak ahead of the ECB meeting.
- Bund Dec8 futures opened 11 ticks higher but are now up 2 ticks at 159.65. The
curve is a little steeper with Schatz yields down 0.2bps at -0.548%, 10-Yr
yields up 0.3bps at 0.4131%.
- Italian BTP yields are wider, with 2-Yr up 2.3bps at 0.825% and 10-Yr up
2.6bps at 2.977% on news of further political discord amid the 2019 budget
process.
- Supply also weighing, with Italy selling up to E7.75bln in BTPs this morning.
- Euribor futures largely flat, with some contracts between Mar19-Jun20 off half
a tick.
- ECB decision today could be a non-event with markets pricing in under 2%
probability of a rate hike at the ECB Governing Council meeting Thursday, but
attention is mainly on new 2018-20 economic projections (amid downside data
surprises and external weakness) and a final decision on ending asset purchases.
- For more see email/bullet Wednesday: POV: 'FINAL DECISION' ON ASSET PURCHASES?

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