EGBs/GILTs: European govvies trade.....>

BOND SUMMARY: EGBs/GILTs: European govvies trade mixed this morning against a

backdrop of modest equity gains and shaky price action in oil (front brent

inching higher, WTI pushing lower).

- Focus this week is on Wednesday's FOMC meeting and the ECB Governing Council

meeting on Thursday. Very little is expected from the ECB this week given the

scale and the scope of the previously announced purchase programmes.

Nonetheless, markets will have a keen eye on the communication during the press

conference, particularly in terms of gauging the ECBs appetite to ease further

if necessary.

- Gilts trade close to unch on the day. Current yield levels: 2-year 0.052%,

5-year 0.162%, 10-year 0.297%, 30-year 0.629%.

- Bunds trade mixed with longer end inching lower. The curve has steepened

slightly with the 2s30s spread up 3bp on the day.

- The short end of the OAT curve has firmed while longer end yields have edge

higher.

- BTPs have rallied with the short-end outperforming. The 2yr yield is down 4bp.