Periphery EGBs are having a strong......>

EGB SUMMARY: Periphery EGBs are having a strong session so far Wednesday, with

good demand for a Spanish 15-Yr syndicated issuance boding well.

- Spread of 10-Yr Spanish bonds vs Bunds is is down 3.6bps at 101.8bps, with BBG

reporting books above E44bln for E5bln issue (no grow) for new Jul-35 15-Yr

benchmark.

- 10-Yr BTPs vs Bund spread down 5.4bps at 261bps, Portugal down 4.6bps at

131.1bps, Greece down 5.8bps at 361.8bps.

- Core EGBs a little weaker, with Mar 19 Bund future down 13 ticks at 166.27.

The 2-Yr yield is up 2.1bps at -0.537%, 5-Yr is up 0.5bps at -0.329%, 10-Yr is

up 0.9bps at 0.117%, and 30-Yr is up 1.1bps at 0.746%.

- ECB's (all but certain) next Chief Economist Philip Lane said this morning

that ECB's current policy is sufficient to cater to a limited downside revision

in econ projections. Fairly minimal reaction.

- ECB speakers still to appear today: Mersch at 1430GMT, Visco at 1600GMT and

Coeure at 1900GMT. Attention also on Fed Chair Powell's congressional testimony.