EGBs have reversed in direction this....>

EGB SUMMARY: EGBs have reversed in direction this afternoon with Bunds rallying

and peripheries selling off near the time of a slight miss on U.S. ISM

non-manufacturing data.

- The Mar 19 Bund future is up 12 ticks at 165.4.

- The Bund curve has flattened by 1bps in the 2yr/30yr section, with both the

2s5s and 10s30s trading sideways. 

- The Mar 19 BTP future is down 41 ticks at 127.48.  

- The ultra long end of the BTP curve sold off today causing a steepening

throughout the curve. The 10-Yr yield up 5.7bps at 2.791%, and 30-Yr up 9.8bps

at 3.649%. 

- 10yr periphery spreads Vs Bunds have all widened today, BTP spread up 6.2bps.

Greek bonds were the outperformer in peripheries, their spread vs 10yr bonds

unchanged on the day.  

- Tomorrow sees the release of German construction PMI data for January as well

as Portuguese unemployment for Q4. 

- The ECB non-monetary policy meeting is also tomorrow.