The calm, before the squall. EGB's......>

EGB SUMMARY: The calm, before the squall.

EGB's traded range bound, a continuation of the morning session, with volumes

mainly dominated by rolls, given EGB's March expiry on Friday.

-Plenty of speculation of late on possible CB coordination in cutting rates and

we didn't to wait too long with the US fed making a moving during the European

afternoon session, when they CUT RATES BY 25BPS.

-Move have been really choppy with bund making a 60 ticks move in just 1 second.

-Nonetheless, we are now settling back at mid ranges since US OIS, had a 50bps

cut pencilled in for the Fed at their next meeting.

-Peripherals have reversed some of their latest widening and are tighter against

the German 10s, with Italy outperforming with the spread sitting at 163.6bps.

-ALL EYES on the US presser following their surprised inter meeting cut at

16.00GMT/11.00ET

- Bund futures are down -0.12 today at 177.71 with BTP futures up 1.99 at 147.20

and OAT futures up 0.51 at 169.29.