Risk-off sentiment fuelled by poor......>

EGB SUMMARY: Risk-off sentiment fuelled by poor data this morning, where Italian

industrial sales saw the worst Y/Y fall since 2009, has seen sovereign curves

flatten across the eurozone with spreads Vs Bunds pushing higher. 

- Core EGBs have broadly rallied while the peripheries have lost ground.

- The German curve has bull flattened: Schatz and Bobl yields are 0.2bps lower

at -0.569% and -0.353% respectively, 10yr Bund yields are down 0.9bps at 0.101%,

while 30yr yields are 1.4bps lower at 0.729%.

- Italian BTP's have sold off, the Mar-19 BTP future is down 21 ticks at 127.78,

having early traded as high as 128.34. 

- Short end BTP yields underperformed the curve: the 2yr yield 3.3bps up at

0.412%, 10yr yield 2.4bps up at 2.790%, and 30yr yield up 2.6bps at 3.649%. 

- France syndicated the new 30yr May-50 OAT benchmark today for E7.0bln, 30yr

spread Vs Bunds drew 1.4bps tighter on the day. 

- Spanish 10yr yields continue recent rally, spread Vs Bunds down 0.7bps.

- Tomorrow sees the release of Eurozone Dec construction output, as well as

speeches from ECB's De Guindos and Praet.