Italian BTPs have been the days big.....>

EGB SUMMARY: Italian BTPs have been the days big mover so far this morning,

retracing back the majority of the gains they made yesterday morning. They are

however still on track to end over 150 ticks up for the week in which Rome

avoided an excessive deficit procedure from the EU. 

- The Mar 19 BTP future is down 55 ticks at 127.17, having traded in a range of

126.96-127.77 today.

- The BTP cash curve has seen bear flattening with the 2-Yr yield up 8.7bps at

0.516%, 5-Yr up 6.2bps at 1.83%, 10-Yr up 5.4bps at 2.792%, and 30-Yr up 1.9bps

at 3.556%. 

- Bunds have lacked direction today and are currently just below last nights

closing levels. 

- The Mar 19 Bund future is down 7 ticks at 163.49, having traded in a range of

163.28-163.54 today.

- The bund cash curve has seen bear steepened, 1.1bps in the 2s10s, 1.9bps in

the 2s30s.  

- With the Christmas break no EZ data until Spanish retail sales on Dec 27.