Weak PMI data this morning showed.......>

EGB SUMMARY: Weak PMI data this morning showed output growth outside of France

and Germany at it's lowest since 2013 and gave momentum to the idea that Europe

is experiencing an economic slow down. 

- The Bund has profited from the data, where German manufacturing PMI was sub 50

for the first time since 2014. The Bund Mar-19 future is currently trading up 47

ticks at 165.05 near days highs. 

- The Bund curve has flattened throughout, 2yr yields are unchanged at -0.582%,

whilst 5yr yileds are down 1.6pbs at -0.304%, 10yr down 2.4bps at 0.201%. 

- Periphery EGBs have shrugged off the poor data to trade up on the day,

possibly in anticipation of a dovish ECB later today.  

- The BTP Mar-19 future is trading up 73 ticks at 128.59, having traded in a

range of 127.82-128.74 today.

- Earlier this morning the Agence France Tresor allotted just under E10.5bln in

nominal and linker papers, whilst also announcing plans to tap the existing

Jun-39 Green OAT. 

- The ECB MonPol decision is expected at 1245GMT.