EGBs are stronger across the board......>

EGB SUMMARY: EGBs are stronger across the board Wednesday afternoon following

headlines that the ECB`s decision Thursday could be dovish.

- BBG sources story out at 1331GMT said the scale of ECB econ forecast cuts

could warrant new TLTROs. While TLTRO discussions and downgrades are no big

surprise, a cut of inflation projections through 2021 is seen as dovish.

- BTPs were the big winner, with the Jun 19 future last up 78 ticks at 127.72,

high of 127.81. 

- 10-Yr BTP spreads in just 3bps though, as German Bunds also gained sharply:

Jun19 futures are 59 ticks higher at 163.55.

- 10-Yr Bund leading the German curve's rally, yield down 4bps at 0.128%.

- Following this bullish move and ahead of the ECB meeting could prove good

timing for planned issuance: Thursday sees France sell OATs out to 2045, and

Spain tap Oblis out to 2048.

- A decent whack of data out Thursday morning as well, including Q4 final

Eurozone GDP and Italian Jan retail sales.