A most risk-on tone has prevailed.......>

EGB SUMMARY: A most risk-on tone has prevailed early Friday, with core EGBs

weakening alongside equity strength.

- Mar 19 Bund futures down 25 ticks at 164.05, near 164.02 low. German curve is

steeper: 2-Yr yield is up 0.7bps at -0.583%, 5-Yr is up 1.5bps at -0.337%, 10-Yr

is up 1.9bps at 0.262%, and 30-Yr is up 2.1bps at 0.871%.

- With an easing US/China trade tone seen (despite Treasury's denial of a WSJ

story re rollback of tariffs), EuroStoxx at highest since mid-December.

- The Mar 19 BTP future is up 41 ticks at 127.95, a tick off day`s high. Il Sole

cited sources saying the Italian finance ministry is looking to renew state

guarantees for banks that securitise NPL portfolios, but gov`t is divided.

- Periphery spreads rallying, spread of 10-Yr Italian BTPs vs Bunds is down

5.2bps at 247.1bps; Spain down 3.6bps at 108.5bps, Portugal down 2.6bps at

148.8bps, Greece down 2.7bps at 395.2bps.

- French OAT 10-Yrs also below 40bps vs Bunds for first time since early Dec.

- Fin Min Tria and ECB`s Visco appear at a book event in Rome at 0900GMT.

- Pretty limited data this morning; EMU/Italy Nov Curr Acct out at 0900GMT.