Italy has seen the most volatile........>

EGB SUMMARY: Italy has seen the most volatile trading of EGBs so far today.   

- BTPs sold off at the open as news emerged overnight that the government may

nationalise Bank Carige. However investors have since discounted the news and

BTPs have rallied through the morning, retracing all earlier losses to trade 35

ticks up 126.08. 

- The 2s10s has seen a gradual flattening across the BTP curve: The 2-Yr yield

down 2.3bps at 0.515%, 5-Yr down 3.5bps at 1.906%, and 10-Yr down 4.1bps at

2.913%.

- Core EGBs have traded largely sideways throughout. 

- The Mar 19 Bund future is down 5 ticks at 163.69, having traded in a range of

163.48-163.83 today. 

- The belly of the bund curve is the slight outperformer thus far today, the

5-Yr yield up 0.8bps at -0.312%. 

- Eurozone Nov unemployment data surprised today making a 10-Yr low of 7.9%.  

- Tomorrow sees the release of Italian Nov retail sales data alongside

publication of the ECBs Dec GC Meeting Accounts.