/GILTS SUMMARY: The ECB is examining the.......>

EGBS: /GILTS SUMMARY: The ECB is examining the possibility of reforming the

inflation goal and specifically looking at a potential symmetrical target. Bund

futures move 14 ticks on the headline. 

- Cash bunds have similarly caught a bid with yields now 1-3bp lower on the day.

Current yield levels: 2-year -0.763%, 5-year -0.651%, 10-year -0.319%, 30-year

0.260%.

- Bull flattening of the OAT curve has intensified with 2s30s ~4bp narrower

since yesterday's closing levels.   

- BTPs are having a strong session. The 10-year benchmark is outperforming the

curve, with the yield down 8bp. The spread over the comparable bund has traded

down to 182bp from a morning high of 191bp. 

- This morning's Brexit headlines did not contain anything substantially new.

Gilts continue to trade in a tight range. Current yield levels: 2-year 0.520%,

5-year 0.529%, 10-year 0.750%, 30-year 1.375%.