The risk-on tone to begin the day on....>

EGB SUMMARY: The risk-on tone to begin the day on US-China trade optimism has

faded, with Italian BTPs giving up some recent gains.

- The Dec 18 Bund future is down 6 ticks at 158.68, having traded in a range of

158.42-158.76 today.

- Italian 5-Star leader and Deputy PM Di Maio expressed `full confidence` in Fin

Min Tria, contradicting earlier headlines that the party was putting pressure on

him to loosen the budgetary pursestrings.

- However, this barely dented earlier BTP losses, with 2-Yr yields up 6.2bps at

0.692% and 10-Yr up 4.5bps at 2.834%. 2-Yr spread/Germany is 6.8bps wider.

- The rest of the periphery wider as well vs Bunds: Spain 10-Yr out 0.8bps,

Portugal out 1.6bps, and Greece out 1.7bps.

- MNI sources story this morning suggesting the identity of ECB Pres Draghi`s

successor could impact 2019 rate hike decisions.

- Euribor futures are largely flat, 1 tick down in far-dated contracts.

- Draghi speaks at 'Making Europe's Economic Union Work' conference at 1300GMT

in Berlin. BBK Board member Joachim Wuermeling speaks at 1500GMT in Hamburg.