EGBs continue to bask in the............>

EGB SUMMARY: EGBs continue to bask in the afterglow of the dovish FOMC

announcement, with core and periphery EGBs sharply higher Thursday.

- Jun 19 Bund futures up 50 ticks at 164.75, reached 164.84 earlier.

- 10-Yr segment outperforming the German curve while short-end relatively

anchored: 2-Yr yield is down 0.9bps at -0.54%, 5-Yr is down 2.8bps at -0.357%,

10-Yr is down 3.8bps at 0.046%, and 30-Yr is down 3.5bps at 0.702%.

- BTPs enjoying a strong start Thursday, Jun19 BTP futures up 54 ticks at

129.73. 10-Yr BTP yield down 7.4bps to lead the curve; spread v Bunds in 3.7bps.

- Spain had a well-covered auction of Bonos/Oblis earlier, selling E3.5bln at

middle of range, and good 10-Yr results. 10-Yr Spain 1.6bps tighter v Bunds.

- Portugal spread in 0.5bps; Greece the outlier, out 1.4bps.

- France likewise with a solid sale of nominal OATS for just under E9.0bln; just

sold E2bln of new Mar-29 OATei.

- OATS gained following nominal auction results but have faded slightly,

nonetheless 10Yr OAT yields 4.2bps lower at 0.416%, tighter to Bunds by 0.4bps.

- Flash EZ consumer confidence out this afternoon (1500GMT).