It has been a very quiet afternoon......>

EGB SUMMARY: It has been a very quiet afternoon for EGBs which have drifted

lower on the back of increased risk appetite.

- The morning underperformance of BTPs after S&P left Italy's rating unchanged

on Friday has now been reversed and peripheral spreads are now largely unch on

the day.

- There has been very little to drive EGBs other than headlines that the EU had

decided to grant the UK a 3-month Brexit flextension. The ball is now back in

the UK court where parliament is voting tonight (and potentially tomorrow too)

on when the next election will be held.

- Bund futures are down -0.72 today at 170.63 with 10y Bund yields up 3.7bp at

-0.327% and Schatz yields up 1.4bp at -0.646%.

- BTP futures are down -0.63 today at 143.71 with 10y yields up 4.0bp at 0.990%

and 2y yields up 3.2bp at -0.175%.

- OAT futures are down -0.67 today at 167.30 with 10y yields up 3.7bp at -0.26%

and 2y yields up 1.2bp at -0.607%.