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Europe has dismissed the more...........>

EGB SUMMARY: Europe has dismissed the more positive market sentiment from Asia
over night as core EGBs have grinded higher with the peripheries losing ground
throughout the morning. 
- German retail sales data this morning showed a 1.1% Y/Y gain firmly beating
market expectations. 
- The Mar 19 Bund future is up 23 ticks at 164.2, having traded in a range of
163.9-164.32 today.
- The 10-Yr has outperformed the bund curve today, 10-Yr yield down 1.1bps at
0.197%. The 2s10s has steepened by 1bps, helped by underperformance at the short
end where the 2-Yr yield has fallen just 0.1bps to -0.596%. 
- Small gains made in BTPs at the market open lacked conviction and have since
been reversed without any major news flow. The Mar 19 BTP future is down 23
ticks at 126.17, having traded as high as 126.7 today.
- The BTP curve has seen bear steepening throughout as maturities of 5-Yr and
below have underperformed the curve: 2s10s down 2.6bps, 5s30s down 2.4bps.  
- De Guindos to speak later today in Latvia on "5-yrs in the Euro" at 1245GMT.  

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