With equities rebounding, EGBs have.....>

EGB SUMMARY: With equities rebounding, EGBs have taken a risk-on tone early

Wednesday, with Bunds weaker and periphery EGB spreads narrower.

- The Dec 18 Bund future is down 36 ticks at 160.08, with the German curve

mildly steeper: 2-Yr yield up 0.8bps at -0.616%, 5-Yr up 2bps at -0.186%, 10-Yr

up 2.8bps at 0.397%, and 30-Yr up 2.4bps at 1.041%.

- BTPs are the outperformer, with 2-Yr yields down 10.9bps at 1.031%, and the

Dec18 future up 52 ticks at 121.74. 10-Yr v Bunds down 9.4bps at 301.2bps.

- Some compression across periphery EGBs, with 10-Yr Spain vs Bunds in 2.7bps at

117.1bps; Portugal in 3.2bps at 148.2bps; Greece in 4.1bps at 384.3bps.

- Euribor futures are a little weaker, Greens/Blues down 1.5 ticks.

- This is happening against the backdrop of stronger equities, following the

U.S. rally late Tuesday: DAX up 1.3%, CAC40 up 1.8%, Euro Stoxx 50 up 1.7%.

- The MNI median has eurozone inflation (1000GMT) remaining unchanged from

September at 2.1%. However, the stronger-than-expected German and Spanish HICP

delivered Tuesday may signal an upside surprise.

- ECB Supervisory Board chair Daniele Nouy speaks at 0905GMT in Berlin.