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EGBs/GILTS: Core EGBs and Gilts are....>

BOND SUMMARY
BOND SUMMARY: EGBs/GILTS: Core EGBs and Gilts are weaker amid higher global risk
appetite Wednesday, though periphery EGB spreads have widened from best levels.
- BTPs fell sharply after a Reuters sources story reported Italy's new economic
plan likely to cut its 2019 GDP growth forecast to 0.3/0.4% from 1.0% and hike
its deficit target to around 2.3% of GDP from 2.0%.
- Jun 19 BTP future is down 15 ticks at 128.94, well off 129.59 high.
- Regardless, 10-Yr BTP spread/Bund tighter on the day by 2.7bps at 253.7bps
(had dropped as much as 9.1bps). Greece the outperformer again, 8.1bps tighter.
- Spain and Portugal around 3bps tighter apiece.
- Jun 19 Bund future is down 67 ticks at 165.44, with long end underperforming
(10-Yr yield up 4.6bps, just shy of positive territory at -0.003%).
- EFSF sold E3bln (no grow) of new 0.875% Apr-35, E11.5bln in orderbooks.
- Brexit newsflow continues: P.M. May currently meeting with Labour`s Corbyn
this afternoon; government opposing Cooper-Letwin Bill to force P.M. to Brexit
delay if no-deal is imminent.
- ECB's de Cos speaks at 1800BST; Thursday sees France and Spain issuance.

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