EGBs are trading mixed thus far.........>

EGB SUMMARY: EGBs are trading mixed thus far Tuesday, with French and Italian

fiscal deficits in focus.

- The Mar 19 Bund future is down 29 ticks at 163.11, with the cash curve bear

steepening: the 2-Yr yield is up 0.4bps at -0.573%, 5-Yr is up 0.9bps at

-0.274%, 10-Yr is up 1.1bps at 0.257%, and 30-Yr is up 0.6bps at 0.847%.}

- French spreads v Germany continue to widen, with projections that Pres

Macron's  fiscal plans in the wake of national protests could reportedly push

the 2019 fiscal deficit to 3.5% of GDP (Les Echos). 10-Yr OAT/Bund spread out

2.2bps at 47.0bps, a new 19-month high.

- The Mar 19 BTP future is down 13 ticks at 123.69. Wrangling continues in Rome

over the deficit; local press reported Salvini and Di Maio holding out for 2.2%

and Conte seeking 2.1%, with 1.95% the PM's 'final offer' to Brussels.

- Broadly speaking, periphery EGB yields are largely steady, Greece the

outperformer with 10-Yr yields down 0.5bps vs Bunds at 400.4bps.

- Data highlight Tuesday is November ZEW in Germany at 1000GMT. The Current

Expectations Index is expected to worsen from -24.1 to -26.0.