News of a potential US-China trade......>

EGB SUMMARY: News of a potential US-China trade deal has triggered downside in

Core EGBs, with periphery spreads narrowing.

- The Dec 18 Bund future is down 39 ticks at 159.59, having traded in a range of

159.55-159.77 thus far.

- Meanwhile, Italian yields are lower, with the long end leading the way - 2-Yr

yield down 2.4bps at 0.969%, 10-Yr is down 2.8bps at 3.352%. 

- Il Sole 24 Ore reported Banca Carige emerged as `fragile` in ECB stress tests.

- 10-yr BTP spreads v Bunds in 6.0bps at 292.1bps; Spain, Portugal and Greece

10s are 2.3-3.3bps narrower.

- Euro Area manufacturing PMI (0900GMT) is anticipated to remain unchanged from

its flash reading of 52.1, a 1.1-point fall from September's reading of 53.2.

The UK construction PMI was previously 52.1 in September and a drop to 52.0 is

pencilled in for October.

- The Economic History Conference hosts ECB speakers Nowotny, Rehn, Smets,

Stournaras, Vella, in Athens at 1530GMT.