Periphery EGB spreads are trading a.....>

EGB SUMMARY: Periphery EGB spreads are trading a little wider early Wednesday as

ECB Chief Econ Praet downplays TLTRO expectations.

- ECB Chief Econ Praet speaking in Frankfurt this morning, said 'will not

necessarily take TLTRO decision in next meeting' and `TLTRO II was very

generous`, but that the `key assessment for March and beyond is if medium-term

economic outlook has changed'.

- BTPs sold off on these comments which could have implications for Italian

banks - 10-Yr Italy vs Germany spread up 2.6bps at 270.9bps.

- 2-Yr Italy yield is up most on curve, by 3.9bps at 0.452%.

- This morning sees Germany sell 0.00% Apr-24 Bobl for E4.0bln. Current 5-Yr

yield is down 0.4bps at -0.354%.

- Mar 19 Bund future is up 13 ticks at 166.55, having spiked to 166.59 earlier.

- Elsewhere, Spain, Portuguese and Greek spreads steady.

- Fairly thin on EMU data today, including German Jan PPI data and Eurozone Feb

consumer confidence.