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Futures Off Lows, Curve Still Steeper


Steady Start

EGB SUMMARY: Periphery spreads Vs core EGBs have widened today as growth
forecasts for 2019 have been cut across Europe. Large downward revisions were
seen in Germany (1.8% to 1.1%), Italy (1.2% to 0.2%), and the Netherlands (2.4%
to 1.7%), thus affecting the overall Eurozone forecast (1.9% to 1.3%) 
- The Mar 19 Bund future is up 77 ticks at 166.28, having traded in a range of
165.52-166.35 today.
- There has been slight flattening across the curve: 10yr yields are the days
outperformer down 4.8bps at 0.114%, 2yr yields the underperformer down 2.3bps at
- As ECB bond buying slows, Italy is considering marketing bonds in the U.S. -
see MNI Main Wire for the full story. 
- The Mar 19 BTP future is down 98 ticks at 126.12, having traded in a range of
- The belly led the sell off with yields up 8bps+ across the 2yr10yr section:
2yr up 8.6bps at 0.579%, 5yr up 11.9bps at 1.908%, 10yr up 8bps at 2.940%.
- Data tomorrow includes Dec industrial production for France and Italy.