BTPs are sharply higher while core......>

EGB SUMMARY: BTPs are sharply higher while core EGBs are largely steady, ahead

of key flash PMI data Friday morning. 

- A report by Corriere that European Affairs Min Savona may resign from

government due to disagreement over budget talks with Brussels has boosted BTPs.

- The Dec 18 BTP future is up 59 ticks at 122.69, having traded in a range of

121.96-122.82 today. The 2-Yr yield is down 13bps at 0.889%,  10-Yr is down

8.3bps at 3.371%.

- Italy 10-Yr spreads briefly dipped below 300bps to Bunds for first time since

Nov 12; 2-Yr yields set for biggest weekly drop since September.

- Rest of EGB periphery is tighter to Bunds: 10-Yr Spain/Portugal by 1.2bps,

Greece by 4.3bps).

- Dec 18 Bunds down 8 ticks at 160.55, having traded in a range of 160.51-160.7

today. 2-Yr yield is up 0.2bps at -0.574%, 5-Yr is up 0.7bps at -0.215%, 10-Yr

is up 0.6bps at 0.376%, and 30-Yr is up 0.4bps at 1.042%.

- Highlights of the morning are Nov Flash PMIs (France, Germany, Eurozone).

ECB's de Guindos speaks at 1200GMT.