There has been only smallish movement...>

EGB SUMMARY: There has been only smallish movement in the core yield curves this

morning as the market awaits the ECB decision. The RXM8 has traded in a

156.92-156.71 range, beginning well but fading soon after the UK Gilt opening. 

- Equity markets have traded slightly softer, with the DAX last down 0.5%

- Peripheral markets have shown more gumph. The 15Y BTP sector was sold early

on, perhaps a trade ahead of next week's BTP auction announcement later tonight.

However, Bloomberg reported that the Lega is reaching out to PD creating hopes

that a mode moderate PM would be chosen from Lega, such as Maroni. The Bund-BTP

was last at 137bp, a tightening of 3bp on the day.

- The small Irish 5Y and 10Y auction saw strong bidding for both lines.

- German factory orders were weaker-then-expected in Jan at 8.5%Y/Y. Bank of

France industrial sentiment stayed at 105 in March.

- Most banks are expecting no change in guidance and that Draghi remains dovish

in the press conference later today. The US data calendar has little that would

generate interest.

- Mar-18 Eurex contracts are closing very soon.