There has been a very bullish...........>

EGB SUMMARY: There has been a very bullish reaction to the FOMC, relief that the

Fed could have put an extra rate hike into the 2018 dotplots. 

- Powell mentioned how the Fed is striking a balance in his press conference.

Indeed, this is the overwhelming conclusion of the Fed reaction pieces that we

have seen this morning.

- The Jun-18 Bund contract opens 21 ticks higher at 158.09 and has continued

higher since. Currently the 10Y Bund yield is -2bp at 0.573% and the curve is

bull flattening. 

- French composite PMI has been released and showed a decline from 57.3 to a

still healthy 56.2 in March. This was somewhat below expectations and suggests

that the trade war threat is casting a shadow.

- Late yesterday, the Italian Treasury announced that next Monday it would sell

E2.5-3.0bln of a new 2Y CTZ alongside 2.0-2.5bln of a 5Y BTPei. There is no EGB

supply for the remainder of this week.

- Various Markit PMI reports and the IFO index at 1000GMT will be the headlines

today.