German FI is little changed ahead of...........>

EGBS: German FI is little changed ahead of European hours; Schatz +1.5, Bobls

+1.0 and Bunds -2.

- So, the deal has been done and PM Conte is set to formally receive a fresh

mandate from President Matterella to form a PD/M5S coalition this morning. The

10-Year BTP yield has set a fresh all-time low, and even managed to trade below

1.00% on a couple of occasions on Wednesday. The 10-Year BTP/Bund spread briefly

narrowed below 170bp on Wednesday, before settling around 175bp. It is worth

remembering that the coalition will be put to the M5S party membership to vote

on next week, assuming a government can be formed (there are murmurings of

discontent from some wings of the party).

- Yesterday also saw the latest round of the Brexit saga lend a supporting hand

- Looking forwards, German state/national CPI & unemployment data, French GDP

(final) as well as EZ confidence metrics provide the highlights of the docket.

The aforementioned political goings on will also provide headlines, while

EUR6.0-7.25bn worth of combined 1.75% Jul-24 BTP, 1.35% Apr-30 BTP and Jan-25

CCTeu supply from Italy headline on the issuance front.