Periphery spreads Vs Bunds has..........>

EGB SUMMARY: Periphery spreads Vs Bunds has widened this morning as poor

European data and risk-off sentiment has taken control, redemptions of just

E1.5bln this week is doing little to help demand for peripheries. 

- The weekend did little to boost markets; Bank of Italy Governor Ignazio Visco

warning that economic growth will be much weaker than predicted, French

president Macron is considering holding France's first referendum in 14 years.

- Italian BTPs have been the days big mover thus far, and indeed the days big

loser, The Mar-19 BTP future down 21 ticks at 127.88 having traded in a range of

127.31-128.30.

- The BTP curve has flattened by 5.1bps in the 2yr30yr section, outperformance

coming from the 30yr where yields are down 3.7bps at 3.584%. Elsewhere 2-Yr

yield is up 1.4bps at 0.43%, 5-Yr up 0.5bps at 1.679%, and 10-Yr is up 0.5bps at

2.752%. 

- The Mar 19 Bund future is currently up 3 ticks at 165.53, just above the

middle of it 34bps daily range. There is constant flattening throughout the

curve, 2s10s 1.1bps flatter, 5s30s 1bps flatter, and 10s30s 0.5bps flatter.