EGBs-GILTS: Off Lows, Italy Supply Eyed

Bunds are flat having come off early lows, but Gilts remain lower on the session. Equities trading mixed with periphery spreads a little tighter (BTP supply eyed this morning).

• Expect plenty of Brexit headlines through the weekend even if nothing seems really new. Barnier has told EU diplomats "he cannot say" if a deal w the UK is possible at this stage with "significant divergences" persisting; he's travelling to London this evening for further talks.
• In data, French flash Nov inflation, and final Q3 GDP, came in above expectations, as did Spanish Oct retail sales. Italy confidence indices for Nov out at 0900GMT, Eurozone's out at 1000GMT.
• In supply, Italy sells up to E8bn of BTP and CCTeu.
• ECB's Panetta speaks at 0930GMT (in interview published earlier he noted the ECB will do more in December), and Schnabel at 1000GMT.

Latest levels:

• Dec Bund futures (RX) down 1 ticks at 175.5 (L: 175.41 / H: 175.65)
• Mar Gilt futures (G) down 17 ticks at 134.36 (L: 134.29 / H: 134.46)
• Dec BTP futures (IK) up 11 ticks at 151.51 (L: 151.36 / H: 151.54)
• Italy / German 10-Yr spread 0.9bps tighter at 118bps