Equity weakness following Monday's......>

EGB SUMMARY: Equity weakness following Monday's U.S. stock rout has boosted core

EGBs, while BTPs are trading a little weaker. 

- BTPs mixed-to-weaker; 2-Yr yield is up 0.9bps at 0.567%, 10-Yr down 0.7bps at

2.953%, though spread of latter to Bunds up 0.9bps at 271.4bps as Bunds rally.

- Media reports this morning suggested that the EU is still seeking EUR3bln in

cuts to recurring budget payments from Italy.

- Il Messaggero reports the EU opinion on the budget and whether to open an EDP

for Italy could be delayed until January.

- Other periphery EGB yields (PT, ES, GR) out around 1bps apiece to Bunds.

- Mar 19 Bund futures up 24 ticks at 163.38, having traded in a range of

163.24-163.51 today. 2-Yr yield is down 0.4bps at -0.612%, 5-Yr is down 1.2bps

at -0.305%, 10-Yr is down 1.4bps at 0.242%, and 30-Yr is down 1.3bps at 0.87%.

- French OATs trading a little tighter to Bunds, down 1.2bps at 47.0bps.

- German IFO out at 0900GMT; anticipated to drop in December to 101.9 from 102.0

in November.