There have already been some wild swings in....>

EGBS: There have already been some wild swings in EMU periphery bonds first

opening higher but then sharply reversing tack and trading lower along with

falls in core/semi-core EGBs as markets digest comments from ECB Praet/Weidmann

and Bloomberg ECB sources story released last night.

- German 10-yr Bund yield currently 4.8bp higher at 0.417%, while the 2s/10s

part of the yield curve is 1.3bp steeper, but the 10s/30s part 2.3bp flatter as

long-end sell-off is more muted.

- ECB Praet said that inflation expectations are increasingly consistent towards

our aim and evidence and Weidmann said that market expectations of QE ending in

2018 are "plausible".

- Overnight saw Italy PM Conte win first confidence vote in the Senate. There is

a second confidence vote expected today in the Lower House which is seen as less

straight forward. 10-yr Bund/BTP spreads is currently 3.2bp wider at 245.2bps,

having traded in a 242bp to 253bp range already this morning.

- Little European data released today however there are more ECB speakers

scheduled later today with Hakkarainen at 1330GMT and Angeloni at 1710GMT.