The ECB decision and post-meeting.......>

EGB SUMMARY: The ECB decision and post-meeting press conference with Pres Draghi

proved largely uneventful, but core EGBs fell on new optimism over Brexit.

- Bund yields picked up sharply on a Bloomberg headline at 1425BST that the UK

and EU had agreed on a key point in negotiations relating to data sharing in

order to solve the Irish border impasse. 10-Yr yields rose by nearly 3bps to a

high of 0.441% though that has since faded, last up 1.4bps at 0.425%.

- Italian BTP yields have had a rollercoaster day, selling off at the open on

reports that Fin Min Tria had threatened to resign, but which were later denied,

leading to a rally. The 2-Yr BTP yield traded in a range of 8bps

(0.784%-0.864%), last up 2.3bps at 0.826%.

- Supply probably weighed too, with BTP sale in the morning pushing M/T bond

yields higher.

- The Euribor strip was largely unchanged on the day, with further dated

contracts (Sep 21 onward) up 1.0 tick each. However the short end remained

anchored, as Draghi noted that there was no discussion on rate hikes at the ECB

meeting.