Most of the interesting price action....>

EGB SUMMARY: Most of the interesting price action occurred in a 5 minute window

at 0800GMT when BTPs dropped suddenly and the core EGBs accelerated higher. The

Bund contract moved from 158.84 to 159.10 and upon reaching this level has

largely traded within a tight range of this level ever since. around 25k Bund

contracts traded around 0800GMT.

- The 4bp widening in the Bund-BTP spread at around 0800GMT was pared to a 2bp

widening fairly rapidly but the spread has been volatile all morning. 

- The CTZ and BTPei auction went through but the bidding was mediocre and the

demand at the usually, domestically-led CTZ auction was poor. We haven't heard

of anything specific behind the push of the Bund-BTP spread to its widest since

mid-January. 

- Data was limited to German Q4 GDP final revision, which remained at 0.6%Q/Q

and the final reading of Eurozone HICP also confirmed its flash reading of

1.3%Y/Y for headline and 1.0%Y/Y for the core.

- After the European close, Coeure will participate in the panel in NY at

1830GMT.