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Periphery spreads are widening..........>

EGB SUMMARY
EGB SUMMARY: Periphery spreads are widening Thursday ahead of the ECB meeting.
- The spread of 10-Yr Italian BTPs vs Bunds is up 6bps at 252.3bps, with some
bear steepening in the curve.
- Most Italian spread narrowing following Thursday`s Bloomberg piece playing up
ECB TLTRO willingness have now been reversed.
- Spain, Portugal, and Greece each 2-4bps wider to Bunds as well.
- Spain Bono/Obli sale a little weak; France's more solid by comparison.
- ECB meeting the focus today, of course, with decision at 1245GMT/presser at
1330GMT. Some material downward revisions to growth and inflation forecasts
expected, but ECB are unlikely to significantly shift forward guidance.
- Big question regards TLTROs, which ECB likely to signal but not launch now.
- Bunds fairly steady, Jun19 future up 17 ticks at 163.72.
- No revision to Q4 2019 Eurozone GDP in final data this morning (0.2% Q/Q), but
some attention being paid to decent investment and consumption figures, offset
in tone somewhat by a downgrade to Q3 growth.

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