EGBs are trading a little weaker to.....>

EGB SUMMARY: EGBs are trading a little weaker to open Thursday, with a good

chunk of supply upcoming this morning.

- The Dec 18 Bund future is down 19 ticks at 159.31, having traded in a tight

range of 159.24-159.35 thus far.

- German curve a little steeper with long end underperforming, 2-Yr yield is up

0.3bps at -0.582%, 5-Yr up 0.9bps at -0.139%, 10-Yr up 1.1bps at 0.458%, and

30-Yr up 1.2bps at 1.089%.

- French OATs likewise a touch weaker; 10-Yr yields up 1.1bps at 0.824%.

- The Dec 18 BTP future is down 20 ticks at 122.37, hitting a low earlier of

122.25. La Repubblica reported that the EU will warn Italy that the

deficit-to-GDP ratio will hit 2.9% in 2019 and could go above 3% in 2020.

- Italy underperforming among periphery EGBs; 10-Yr spread to Bunds 1.7bps

wider, with Spain/Portugal/Greece each tighter by 0.3-1.0bps.

- Fair bit of supply today, with France, Spain and Ireland selling M/T-L/T bonds

this morning, potential total of more than E14bln.

- Euribor futures a little weaker at the long end, Blues off 1.5-2.0 ticks.