Indicative of Brussels' view that.......>

EGB SUMMARY: Indicative of Brussels' view that no-deal Brexit is becoming more

likely, Bloomberg reports that EU envoys met today to discuss a common position

on future relation with the UK in that scenario. 

- This is said to include provisions that would commit the UK to safeguarding

the Irish border, paying into the EU budget and protecting the rights of EU

citizens in the UK.

- EGB's have sold off today with core-periphery spreads widening.

- German bund yields are ~1bp higher on the day. Current yield levels: 2-year

-0.601%, 5-year -0.447%, 10-year -0.075%, 30-year 0.550%.

- The French OAT curve has steepened through the session with the 2s30s spread

trading up to 178.8bp from 175.8bp.

- Italian BTP yields pushed higher during the morning session and have held

steady through the afternoon. The 5-year benchmark has underperformed the curve,

with the yield edging up 3.9bp on the day.

- Euribor futures are broadly 0.5-4.0 ticks lower with greens underperforming.