Risk-on is the dominant theme,..........>

EGB SUMMARY: Risk-on is the dominant theme, following positive trade news out of

the weekend's G20 meetings, and signs of Rome-Brussels reconciliation.

- The Dec 18 Bund future is down 23 ticks at 161.31, though has recovered from

earlier losses, having traded in a range of 161.01-161.33 today.

- The 2-Yr German yield is up 0.9bps at -0.587%, 5-Yr is up 0.9bps at -0.259%,

10-Yr is up 1bps at 0.323%, and 30-Yr is up 0.4bps at 0.991%.

- BTP Dec18 futures up 63 ticks at 125.19, remaining near Monday`s high of

125.24; spread of 10-Yrs vs Bunds is down 7.4bps at 282.6bps.

- BBG headlines this morning from Italy's Messaggero suggested Di Maio & Salvini

are ready to accept a new deficit/GDP target, with the paper reporting that

Italian PM Conte is preparing for a 1.9-2.0% deficit to GDP ratio.

- Other periphery EGB spreads also down, Spain 10-Yr in 1.6bps at 117.4bps,

Portugal 2bps tighter at 149.4bps, Greece in 4.5bps at 390.9bps.

- Nov manufacturing PMIs coming in mixed: Spain beat to the upside, Italy to the

downside, France in line. Germany and Eurozone composite up shortly.

- Light on data and ECB speakers thereafter.