EGBs are trading broadly higher. -......>

EGB SUMMARY: EGBs are trading broadly higher.

- The Dec 18 Bund future is up 17 ticks at 160.91, having traded in a range of

160.86-161.21 today. The belly is outperforming on the cash curve: 2-Yr yield is

down 0.7bps at -0.577%, 5-Yr is down 1.1bps at -0.233%, 10-Yr is down 0.9bps at

0.352%, and 30-Yr is down 0.5bps at 1.014%.

- The Dec 18 BTP future is up 12 ticks at 123.91, off highs of 124.29 today.

2-Yr yield is up 2.2bps at 0.854%, while 10-Yr is down 1bps at 3.259%.

- BTPs spiked briefly on MNI sources story that the ECB could indicate

willingness to buy Italian debt if the country faced a financial crisis, though

this would likely be via OMTs and was not currently under consideration.

- Periphery EGB spreads a little tighter to Bunds; Spain, Portugal, Greece

10-Yrs narrower by 1.5-2.5bps.

- Main focus for rest of the day likely to be on any sign of a US-China trade

detente ahead of the G20 meetings in Buenos Aires.

- ECB`s Mersch speaks in Frankfurt at 1600GMT.