The afternoon has seen Bunds reach......>

EGB SUMMARY: The afternoon has seen Bunds reach new highs while BTP spreads have

narrowed somewhat. Bunds continue to outperform Treasuries ahead of tomorrow's

ECB meeting.

- There have been no real headline drivers for EGBs other than the earlier

headlines that Di Miao is stepping down as leader of Five Star, although he will

remain in the cabinet. He is due to make a statement regarding his future

imminently. Earlier today BTP-Bund spreads were almost 8bp wider but now they

are little changed on the day, in line with other peripheral spreads.

- Bund futures are up 0.15 today at 172.36 with 10y Bund yields down -1.5bp at

-0.265% and Schatz yields down -0.5bp at -0.592%.

- BTP futures are up 0.01 today at 143.09 with 10y yields down -1.3bp at 1.356%

and 2y yields down -0.3bp at 0.000%.

- OAT futures are up 0.17 today at 164.76 with 10y yields down -1.8bp at -0.11%

and 2y yields down -0.1bp at -0.553%.