EGBs have seen some large moves early...>

EGB SUMMARY: EGBs have seen some large moves early Wednesday amid a veritable

feast of ECB speak.

- 10-Yr Bunds sold at a negative yield at auction this morning for the first

time since 2016; as a client noted, 30-Yr Bunds trading inside JGBs.

- 2-Yr German yield is down 1.2bps at -0.574%, 5-Yr is down 2.4bps at -0.413%,

10-Yr is down 3.9bps at -0.054%, and 30-Yr is down 5bps at 0.533%.

- No real triggers seen for sharp rally in Bunds or fall in Italian BTPs,

though. BTP future is down 62 ticks at 128.95, having traded as low as 128.64.

- 10-Yr Italian BTP spread vs Bunds is up 10.5bps at 258.8bps, vastly

underperforming other periphery EGBs (Spain, Portugal, Greece out 2-5bps each).

- Possible triggers include Italian Gov`t reportedly considering a cut in GDP

forecasts to 0.1% from 1.0% (per Il Sole 24 Ore); probably not helped by supply

tomorrow (E7.5bln in M/L BTPs).

- Not much new from ECB`s Draghi and Praet earlier, toeing a fairly dovish line,

Praet reiterating that new TLTRO conditions depend on lending outlook.

- Still to come are ECB`s Mersch (1330GMT) and Villeroy (1730GMT).