It has been a busy afternoon session,...>

EGB SUMMARY: It has been a busy afternoon session, with EGBs staying bid and

making new intraday high going into Italy's Conte Addressing Lawmakers in Rome.

He soon announced his resignation pushing Bund and BTP higher. and in turn

Equities and the EUR currency lower. 

- Moves quickly reversed though, with Germany'S Merkel stating that the EU will

think about practical solutions regarding the Irish Backstop.

- SEP Bund futures dropped 30 ticks, back below 179.00 on the headline, but on a

closer look, there was little new in the comments, as she again offered the

chance of amendments to the political declaration, but not to the definitive and

legally-binding withdrawal agreement. Speaking in Iceland, Merkel also

underlined the fact that the EU27 remain steadfast in their agreement on the

withdrawal agreement.

- Peripheral spreads are generally flat, with Italy best performer versus the

German 10yr, 6.5bps tighter in the spread at 201.06. Part of the move in the

spread is attributed to the large 140 ticks rally in the BTP during PM Conte

address.