European bonds remain under pressure,...>

EGB SUMMARY: European bonds remain under pressure, with core EGBs weighed down

by a global risk-on move amid the North American free trade deal, but Italian

BTPs remaining weak on budget concerns.

- German bonds are a little weaker. The Dec 18 Bund future is down 29 ticks at

158.5, and the curve is bear steepening: 2-Yr yield is up 0.3bps at -0.52%, 5-Yr

up 2bps at -0.07%, 10-Yr up 2.8bps at 0.498%, and 30-Yr up 3.4bps at 1.112%.

- Italian BTPs are off their lows but remain elevated as market awaits details

on the 2019 budget and any news from the Eurogroup meeting in Luxembourg.

- The Dec 18 BTP future is down 24 ticks at 123.6, having traded in a range of

122.8-124.16 today. There has been the usual bear flattening, with 2-yr yield up

7.1bps at 1.104% and 10-Yr up 2.2bps at 3.168%.

- EGB periphery spreads are well behaved, though: 10-Yr BTP to Bund spread down

0.7bps at 267bps; Spain down 1.4bps at 101.6bps; Portugal 1.8bps at 138.8bps;

Greece 2.7bps at 368.6bps.

- Euribor strip is largely flat, with some contracts off 0.5-1.0 ticks.

- ECB Governing Council member Ewald Nowotny speaks in Vienna at 1400GMT.