Trend and momentum persisted during.....>

EGB SUMMARY: Trend and momentum persisted during the afternoon session. 

-EGBs extended losses on the Risk On tone, following US-China headlines on the

London open. 

-Most interestingly for Europe, was the underperformance of the BTP, which had

few desks and investors scratching their heads. 

-Most peripheral have been tighter but yet the BTP is sitting 5bps wider against

the German 10yr. 

-No single catalyst for BTP that we could blame on the contract's weakness, with

the most likely explanation, some little follow-through from buyback

announcement yesterday. 

-Despite the questions, what was clear, was that BTP was/is wider vs everything

else in Europe today. 

- Bund futures are down -0.96 today at 169.71 with BTP futures down -0.98 at

142.49 and OAT futures down -0.95 at 166.43.