The EU continues to ratchet up the......>

EGB SUMMARY: The EU continues to ratchet up the rhetoric on Brexit with a

European Commission official indicating that it is increasingly likely that the

UK will leave the single market without a deal. 

- Furthermore, the European Commission has stated that no-deal preparations have

been completed. 

- Earlier in the day the IMF issued a stark warning to the eurozone, arguing

that the region is vulnerable when the next downturn strikes.

- German bunds have traded in a tight range with yields close to unch on the

day. Current yield levels: 2-year -0.573%, 5-year -0.397%, 10-year -0.015%,

30-year 0.597%.

- French OATs have traded soft with yields 1bp higher on the day. 

- Italian BTP yields have drifted higher through the day with the short-end

underperforming. The 2s30s spread has narrowed to 322bp from 325bps.

- The Spanish curve has steepened with yields ~4bp higher at the longer end.

- Euribor futures are broadly flat/1.5 ticks lower.