Italian BTPs remain under some..........>

EGB SUMMARY: Italian BTPs remain under some pressure early Monday.

- BTP yields shooting higher, led by the short end: 2-Yr yield is up 7bps at

0.486%, 5-Yr yield up 5.6bps at 1.73%, 10-Yr up 2.7bps at 2.774%.

- Bank of Italy/ECB's Visco not helping risk appetite, commenting Saturday that

higher BTP rates are a 'significant' risk.

- Spread widening -- 2Yr vs Germany up 6.1bps, 10Y 1.6bps wider -- has been

mitigated by higher German yields.

- The Mar 19 Bund future is down 16 ticks at 165.34, having traded in a range of

165.3-165.64 today.

- Bild circulated what it claimed to be an internal German government document

over the weekend, with the document noting that Germany faces a EUR 25bn budget

shortfall by 2023, unless it tightens spending.

- Spreads elsewhere fairly well-behaved, 10-Yr Spain and Portugal 0.5-1.0bps

wider to Bunds, Greece 0.5bps narrower.

- Italian Jan inflation data out at 1000GMT; Eurozone PPI at 1000GMT.

- ECB's Mersch speaking in Budapest at 0830GMT; Costa speaking at 1400GMT.