It has been a busy morning so far in....>

EGB SUMMARY: It has been a busy morning so far in European FI markets. The main

driver seems to be continued follow through from comments by Italy Deputy PM

that Italy are not going to take EU deficit limits too seriously. 10y BTP-Bund

spreads are 6.6bp wider on the day, approaching the highs of early Feb.

- Bund futures are up 0.33 today at 166.92 and are trading at their highest

levels since August 2016. 10y Bund yields are down -2.6bp at -0.97% and Schatz

yields are down -2.0bp at -0.659%.

- BTP futures are down -0.44 today at 128.68, sitting just above the 100-dma.

10y yields are up 4.5bp at 2.773% and 2y yields up 8.5bp at 0.763%.

- Earlier this morning German GDP was in line with consensus expectations with

French CPI a tenth higher than the flash estimate. Italian industrial sales are

due up shortly with a second release of Eurozone GDP also due up this morning.

- In terms of issuance today Germany is coming to the market with the 30y 2048

Bund, Portugal is selling bills while there is also an 8y KfW Green Bond

syndication.