Periphery EGBs are outperforming........>

EGB SUMMARY: Periphery EGBs are outperforming Monday, led by BTPs, with risk

appetite picking up to kick off the week.

- Fitch's hold on Italy's rating Friday spurred an early BTP rally, Mar 19

future last up 68 ticks at 128.07, off earlier high of 128.54.

- 2-Yr Italian yields down 9bps at 0.424%, 10-Yr is down 5.9bps at 2.788%.

- Spain and Portugal spreads down 2.5bps (10-Yr) vs Bunds, while Greece is

nearly matching Italy`s compression with 10-Yr yield spread in 5.4bps.

- Bund future is down 34 ticks at 166.28, not far off the lows (166.20).

- 2-Yr  German yield is up 1.2bps at -0.553%, 5-Yr is up 2bps at -0.329%, 10-Yr

is up 1.9bps at 0.115%, and 30-Yr is up 2.1bps at 0.737%.

- European stocks enjoying a U.S.-China trade detente, with EuroStoxx 50 up

0.4%, and Italy`s MIB leading the way , up 0.9%.

- Little in the way of concrete Brexit developments over the weekend, with many

headlines pointing to an extension of Article 50 beyond March 29.

- Euribor trading fairly flat, a few contracts down 0.5-1.0 ticks.

- No more key Eurozone data Monday; no ECB speakers scheduled either.