EGBs traded mixed Wednesday with........>

EGB SUMMARY: EGBs traded mixed Wednesday with little clear direction, with Bunds

initially tracking UK Gilt yields lower in the morning, before appearing to take

a cue from US Treasury yields rising in the afternoon crossover.

- The German 2s10s curve bull flattened by 0.8bps to 95.9bps, with 10-Yr yields

down 1.0bps and 2s unchanged. 

- Periphery spreads widened slightly amid Bund gains and weaker BTPs, Bonos, and

PGBs. Italy underperformed, with both the 2-Yr and 10-Yr BTP spreads over German

equivalents out 3.5-4.0bps.

- Spain/Germany spreads also widened for the first time in five sessions, with

the 10-year differential rising by 2.7bps to 93.2bps. 

- A quiet day in the rates space. Euribor futures up 0.5-1.0 ticks across the

Green and Blue contracts, but the strip remained anchored out to Dec-19.

- Thursday sees another fairly light day event/data-wise. The morning sees

medium/long-term auctions by France (E6.5-7.5bln OATs and E1.25-1.75bln linkers)

and Spain (E4.0-5.0bln Bonos/Oblis).