Italian debt is the standout mover in...>

EGB SUMMARY: Italian debt is the standout mover in the EGB space this morning on

the back of renewed early election jitters. The 10-year BTP/Bund spread is up

8.8bps to 131.6bps, just off the 132.5bps intraday high which was the widest

level since Apr 12. 

- Saw a fairly large Jun18 BTP futures block go through at 10:22 BST, looking

like a sell, which might explain a sharp move higher in yields at that time.

- In the wake of Italian political risks, the rest of the periphery looks

offered, though is outperforming relative to BTPs, with Portugal 4.0bps wider to

Bunds and Spain 2.4bps out.

- Bunds are trading weaker, with the Jun18 future down 19 ticks to 159.12,

though slightly higher than the 159.06 intraday low.

- Fairly limited movement across Euribor futures. Some very modest steepening,

with Dec21 Euribor off 1.5 ticks to 99.20, and whites and reds only off 0.5

ticks.

- Apart from Italian political risks, attention seems firmly on Trump's

announcement on the Iran deal at 1800GMT.