Periphery spreads Vs core EGBs have.....>

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

-0.578%. 

- 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

125.75-127.14. 

- 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.