A day that began in slow fashion for....>

EGB SUMMARY: A day that began in slow fashion for EGBs ahead of the US nonfarm

payrolls release gave way to a sharp move lower in yields following NFPs - only

to be reversed as the afternoon played out.

- Bunds traded in a fairly narrow range in late morning and early afternoon,

with an 18-tick jump in Jun18 futures to a daily high of 159.39 following the

NFP release before suddenly reversing course, with the contract now off 20 ticks

today at 159.06. Curve slightly steeper with 2s10s at 111.63bps, up 0.33bps.

- Periphery spreads started the day off with solid tightening but this reversed

steadily over the course of the day, with political noise in Italy typically

unfavourable. 10-year BTPs/Bunds spread dropped 0.6bps early, but has since

reversed, last 2.48bps wider overall on the day at 123.25bps and nearing the

recent high of 124.62bps set April 30. Italy slightly underperforming Spain and

Portugal today.

- Euribor futures had a more sedate day following Thursday's big moves, with a

bit of steepening after yesterday's flattening. ERZ1 last down 2 ticks at

99.195, with no change in Dec18s or 19s.