Periphery EGBs have staged an...........>

EGB SUMMARY: Periphery EGBs have staged an impressive rally on Monday, with

issuance in focus.

- Mar 19 BTP futures are up 51 ticks at 128.09, high of 128.19 earlier, with 

belly of the cash curve outperforming: 2-Yr yield down 6.2bps at 0.366%, 5-Yr is

down 7.7bps at 1.678%, 10-Yr is down 4.6bps at 2.753%.

- Spread of 10-Yr Italian BTPs vs Bunds is down 5.1bps at 264.6bps alongside a

rise in Italian banking equities.

- Other periphery instruments rallying. 10-Yr Spain vs Bunds 2.8bps tighter at

111.1bps, Portugal down 4.1bps at 141.9bps, and Greece in 13.3bps at 364.9bps.

- Greek 10-Yr yields at lowest in a year; Portugal yields lowest in 4 years.

- French spreads trading mixed on issuance news: AFT announced syndication of

new May-50 OAT.

- Elsewhere, headlines just hit of Cyprus 15-Yr benchmark syndication.

- No key European data or ECB GC speakers due today, though week sees plenty of

highlights including German ZEW survey due Tues, flash EZ PMI data & ECB Jan

meeting minutes due Thurs, as well as EZ CPI & German IFO due Fri.