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

EGB SUMMARY
EGB SUMMARY: EGBs are stronger across the board Wednesday,though without
decisive short-term direction ahead of the ECB decision on Thursday.
- Italy has provided most of the headlines in Euroland today. MNI cited sources
saying 'mini-BOTs' could be ready by September, at odds with Brussels.
- This after the Commission kicked off the debt disciplinary process vs Italy.
- But PM Conte's afternoon comments that 'aims to reach an agreement on 2019
targets' shot BTP futures up 30 ticks. Sep19 down 2 ticks at 129.56 (L: 128.50).
- Italy / German 10-Yr spread 1.3bps wider at 273.4bps, while Spain, Portugal,
and Greece each 2-3bps tighter.
- Euribor futures up across the strip, with Blues up 4.0-4.5 ticks.
- All eyes on ECB Thursday, particularly TLTRO terms, growth forecasts, and
forward guidance. Our full preview available on request.
- Latest futures levels:
* Sep Bund futures (RX) up 26 ticks at 171.21 (L: 170.85 / H: 171.31)
* Sep OAT futures (OA) up 43 ticks at 162.69 (L: 162.31 / H: 162.72)

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