The big winner so far from the EU agreement....>

EGBS: The big winner so far from the EU agreement on migration has been Italy

with BTP yields falling sharply, while the main losers have been Germany and the

Netherlands as BUND and DSL yields edge higher.

- The EU agreement on migration included strengthening external borders and

sending migrants to 'controlled centres' for processing on a 'voluntary basis',

which please both Merkel and Conte and is likely to ease political tension in

their respective countries. 

- German 10-yr yield is 1.5bp higher at 0.334% and is leading the rest of the

yield curve higher with 2s/10s 0.7bp steeper and 10s/30s 0.3bp flatter.

- Short-end of the BTP curve has seen the largest moves lower in yield and

in-turn bull steepening the curve. 2-yr is 9bp lower, 5-yr 8bp lower and 10-yr

5bp lower.

- Looking ahead main event today will be release of Eurozone flash inflation at

1000BST and so far its on course to come in at consensus level of 2.0% y/y.

- Euribor future strip is steady to lower, curve steeper as blue contracts fall

2 to 2.5 ticks