EGBs (with the notable exception of.....>

EGB SUMMARY: EGBs (with the notable exception of Italy) are trading sideways,

with ECB speakers' increasingly dovish tone being digested.

- A very strong Italian 15-Yr benchmark syndication Tuesday (E10bln sold, books

in excess of E35bln) has helped boost BTPs.

- The Mar 19 BTP future is up 46 ticks at 127.11, earlier high of 127.21. The

2-Yr yield is down 6.2bps at 0.355%, 10-Yr is down 5.5bps at 2.819%.

- Bunds have traded in choppy fashion, with Mar 19 future down 12 ticks at

164.77. Schatz yields up 0.8bps at -0.611%, Bobl up 0.9bps at -0.386%, Bund up

0.5bps at 0.211%, Buxl up 0.1bps at 0.824%. Final CPI data in line this morning.

- ECB`s Nowotny speaking now, mentioning `elements of weakening due to political

uncertainty`, following from Draghi`s comments Tuesday re weaker than expected

developments. Villeroy speaks twice today (0900GMT, 1730GMT).

- German press reports have suggested that Bundesbank Pres Weidmann's contract

will be extended by another 8 years.

- Little reaction to Tuesday night`s failed (as expected)Brexit vote in the UK.

- EMU final CPI out at 1000GMT; Italy industrial orders could interest(0900GMT).