Wednesday was fairly quiet on the EGB...>

EGB SUMMARY: Wednesday was fairly quiet on the EGB front, though it may prove a

temporary calm ahead of the ECB Governing Council meeting Thursday.

- Germany saw a technically uncovered auction of Oct-23 Bobl this morning. While

German bonds sold around the time of the auction, this was in line with a

broader move in EGBs, and in any case they bottomed out early afternoon and are

slightly up on the day, with the Sep8 Bund future up 4 ticks at 162.32.

- The German curve flattened, with 2-Yr yields up 0.8bps at -0.599%, pushing

2s10s down down 0.9bps at 99.1bps. 10s/30s and 2s/30s also flatter with 30-Yr

down 1bps at 1.046%.

- Periphery spreads narrowed, with the Iberian countries outperforming: 10-Yr

Portugal PGBs in 4.7bps vs Bunds, with Spain in 2.3bps.

- Italian BTPs lagged the periphery gains slightly, with 10-Yrs in 2.0bps at

226.8bps, not helped by upcoming supply (CTZ/BTPei auction tomorrow).

- The Euribor futures strip saw another relatively quiet day. Reds through Blues

are up half a tick, with White contracts unchanged.

- Focus for ECB Thursday is on clarity on APP plans and re-investment strategy.