Periphery EGBs have continued to sell...>

EGB SUMMARY: Periphery EGBs have continued to sell off today whilst early gains

made by Bunds have been retraced after low demand for their new benchmark 5yr

Bobl saw it go technically uncovered (0.96x, Buba cover 1.2x). 

- French ambassador for international investment has expressed that he "thinks

it (Brexit) will be postponed" as EU leaders have made clear that they are open

to negations to push back Brexit day, but the EU will not want a date later than

Jun 1st when there will be a new European Parliament.

- The Mar-19 Bund future is at the bottom of it's days range down 3 ticks at

164.44, having previously traded as high as 164.77. 

- The Mar-19 BTP future is down 17 ticks at 127.74, in the middle of days range.

- The belly of the BTP curve has underperformed today, causing bear steepening

in the 2s5s and bear flattening in the 5s10s. 

- Spanish bonds continue to be strong after yesterday's syndication, 10yr SPGB

spread Vs Bunds is down 1.63bps at 108.2bps.   

- January consumer confidence flash for the Eurozone is due today at 1500GMT.