There is a split between the............>

EGB SUMMARY: There is a split between the core/semi core and the periphery this

morning: Spanish and Italian yields are 1-2bp lower across the curve and but the

German curve is around 0.5bp higher along the whole terms structure. French and

other EGB markets are stuck between these two extremes.

- The first German State CPIs was released and once again point to a

weaker-then-expected German national CPI. Saxony grew 0.4%M/M, compared to a

consensus for the national of 0.6%M/M.

- Spanish HICP surprised in the other direction at +0.1%M/M, compared to an

expected decline of 0.2%M/M.

- French consumer confidence also surprised strongly to the downside declining

to 100 in Feb from 104.

- It is a heavy day for data with the final German State CPIs and National

number. Additionally, the various Eurozone business/consumer/economic surveys at

1000GMT and then the Powell Testimony at 1330GMT for the published statement and

1500GMT for the actual event.

- Italy sells BTPs (incl a new 5Y) and a 7Y CCTeu.