Protests in France have started to......>

EGB SUMMARY: Protests in France have started to spill into the markets with OAT

yields rising as the French Central Bank cut Q4 GDP forecasts this morning.

- The OAT/Bund 10-yr spread has widened 2bps to 45.9bps, highest since May 2017.

- Elsewhere in Europe it's been a fairly quiet morning, main source of newsflow

has been UK PM May reportedly pulling Tuesday`s Brexit withdrawal vote.

- The Mar-19 Bund future is down 7 ticks at 163.10, having traded in a range of

162.98-163.34 today. 

- The short end of the Bund cash curve has underperformed with the 2-yr and 5-yr

yields both up 2.5bps at -0.574% and -0.279% respectively. The 10-yr yield is up

0.9bps at 0.268%, whilst the 30-yr yield has fallen 1bps to 0.872%.

- The Mar-19 BTP future is up 33 ticks at 123.76 with confirmation that Italian

PM Conte will meet with EU`s Juncker to discuss the budget on Wednesday. 

- The 2-Yr BTP yield is down 4.1bps at 0.695%, 5-Yr is down 4.3bps at 2.176%,

10-Yr is down 3bps at 3.102%, and 30-Yr is down 2.6bps at 3.703%.

- The Portuguese PGB/Bund 10-yr spread has also widened, 1.8bps to 153.1bps.