EGBs are steadying after an early.......>

EGB SUMMARY: EGBs are steadying after an early risk-on rally Monday.

- The Dec 18 Bund future is down 20 ticks at 161.34, near the top of the daily

range of 161.01-161.40. 2-Yr yield is up 0.7bps at -0.589%, 5-Yr is up 0.5bps at

-0.263%, 10-Yr is up 0.7bps at 0.32%, and 30-Yr is up 0.1bps at 0.988%.

- ECB revealed their new capital key starting in Jan 2019; no surprise to see

lower allocations for Italy and Spain and more for Germany. 

- Market impact relatively limited though more clarity could be seen at Dec 13

GC meeting. Italian BTPs remain near day's highs - Dec 18 futures up 59 ticks at

125.15, (high of 125.24 today).

- Greece the EGB outperformer; 10-yr spread to Bunds down 7.8bps at 388bps

(Italy down 6.6bps, Spain down 1.3bps, Portugal down 2.9bps).

- Euribor futures off a touch, down 0.5-1.0 ticks across the strip.

- EMU final November manufacturing PMI was a little above expectations (51.8 vs

51.5), though overall numbers were mixed, with upside surprises in Germany and

Spain countered by poor results in Italy and France

- ECB's Weidmann up at 1635GMT.