EGBs are weaker early Wednesday, with...>

EGB SUMMARY: EGBs are weaker early Wednesday, with issuance continuing apace to

ring in the New Year.

- The Mar 19 Bund future is down 9 ticks at 163.65, with 2-Yr yield down 0.1bps

at -0.576%, 5-Yr up 0.4bps at -0.316%, and 30-Yr up 0.8bps at 0.877%.

- Italy also weaker (Mar 19 BTP future is down 25 ticks at 125.48), though 10-Yr

BTPs underperforming the rest of EGB periphery by around 2bps (vs Spain, Greece,

Portugal).

- Long-end issuance appears to be a key factor weighing on EGBs.

- Following on from Belgium and Slovenia Tuesday, Portugal and Ireland selling

benchmark 10-Yrs via syndication Wednesday (PT guidance at MS+116bps, IR at

MS+29bps). - In addition to these, Germany auctioning new 10-Yr Bund benchmark.

- Italy planning 15-yr benchmark sale as well, Reuters reported Tuesday - in

addition to tapping 3-/7-/30-Yr at auction on Friday.

- Bigger than expected fall in the French Insee consumer confidence survey with

the index at the lowest reading now since Nov 2014 (Gilets Jaunes impact).

- December Euro Area unemployment data out at 1000GMT.