Italian BTP yields remain pressured.....>

EGB SUMMARY: Italian BTP yields remain pressured amid supply and politics, while

core EGBs are slightly weaker ahead of the ECB announcement at 1145GMT.

- 2-Yr Italian BTP yields have traded in a range of 0.793%-0.864%, last up

3.3bps at 0.8354%. BTPs have been buffeted by a series of headlines re Fin Min

Tria`s alleged threats to resign, which have been denied by PM Conte and Deputy

PM Di Maio.

- Bund curve is steeper, with 2-Yr yields down 0.4bps at -0.5494%, and 10-Yr up

0.6bps at 0.417%.

- Apart from Italy, the EGB periphery is trading a little tighter to Bunds, with

10-Yr BTPs out 2.7bps at 256.7bps, Spain in 0.2bps at 105.2bps, and Portugal in

0.1bps at 145.0bps.

- Euribor futures slightly off, down 0.5-1.0 ticks across the strip.

- No change expected at ECB meeting, though attention is mainly on new 2018-20

economic

projections (amid downside data surprises and external weakness) and a final

decision on ending asset purchases.