EGBs are trading a little stronger......>

EGB SUMMARY: EGBs are trading a little stronger across the board, with weak PMI

data suggesting downside risks to Eurozone growth.

- With the Oct EMU flash PMI declining to a 25-month low of 52.7 in Oct from

54.1 in Sep, with particular weakness seen in Germany and forward looking

indicators likewise poor, Bunds hit session highs though have faded since. 

- The Dec 18 Bund future is up 18 ticks at 159.97, high of 160.19.

- Bobl auction today was technically uncovered (0.99x real cover), first time

for 5-Yr since July, though tail was small (1c).

- BTPs have stabilised, with the Dec18 future up 25 ticks at 120.38, also off

highs (120.64 today). 10-Yr spread/Bunds down 4.1bps at 314.3bps, a move in line

with other periphery EGBs.

- OATs are outperforming Bunds, particularly in the belly; 5-Yr OAT yield down

1.3bps at 0.127%, vs Bobl down 0.7bps at -0.1759%.

- Euribor futures are higher across the strip, Greens/Blues up 2.0-2.5 ticks.

- We have compiled an ECB preview including Sell-Side analysts` takes - for PDF

contact us.