EGBs/GILTS: Thursday has seen choppy...>

BOND SUMMARY: EGBs/GILTS: Thursday has seen choppy trading in core EGBs, gains

for Gilts, and more widening in Italian spreads.

- 10-Yr BTP spreads hit another post-February wide vs Bunds, last up 5.2bps at

269.8bps. Mixed sell-side opinions on possible S&P downgrade Friday, though

consensus is 'no change'. Rating currently BBB/negative.

- Rest of periphery EGBs are 1-2bps wider of Germany.

- Hearing cash buyers of Schatz vs Bunds futures today, as contact says, "curve

steepeners continue to be flavour of the day". 

- ECB VP de Guindos commented in New York that QE is 'something we can use again

if needed', expects H2 growth pickup, but 'cannot be super optimistic'.

- The U.K. government announced earlier there are no plans to hold a vote on

Brexit Withdrawal deal next week, which removes some near-term event risk.

- Latest futures prices:

* Jun Bund futures (RX) down 3 ticks  at 165.7 (L: 165.56 / H: 165.8)

* Jun Gilt futures (G) up 12 ticks  at 127.57 (L: 127.3 / H: 127.69)

* Jun OAT futures (OA) down 23 ticks  at 162.04 (L: 161.92 / H: 162.25)