Risk appetite continues to pick up in...>

EGB SUMMARY: Risk appetite continues to pick up in the eurozone following US

midterm results largely in line with expectations, with Italy outperforming.

- BTP futures hit day's highs following an MNI source piece at 1050GMT on tweaks

to the Italian budget to placate Brussels and stave off EDP sanctions while

maintaining overall spending goals.

- The Dec 18 BTP future is up 94 ticks at 122.80 (high of 122.84); curve bull

flattening, 2-Yr yield down 5.3bps at 0.874%, 10-Yr down 8.1bps at 3.316%.

- Meanwhile, Dec 18 Bund future down 13 ticks at 159.57 near day`s low of

159.55. 2-Yr yield is up 1.4bps at -0.588%, 10-Yr is up 0.6bps at 0.44%.

- Germany sold 10-yr Bund at 0.42% yld earlier, 1.1x cover.

- Euribor futures off 1.0-1.5 ticks in futures beyond Dec19.

- EMU retail sales data slightly disappointing, flat M/M in Sep (0.1% expected).