Bund future opened slightly higher......>

EGB SUMMARY: Bund future opened slightly higher but has since given up those

gains and is now unchanged on the day as Gilts pare earlier sharp move higher as

markets looked to have over reacted to dovish comments from BoE Governor Carney.

- German 10-yr Bund yield last 0.6bp lower at 0.594%, however core/semi-core

30-yrs are little changed and is steepening that part of the yield curve.

- EMU periphery are lagging so far Friday with Bund/BTP spread 2.1bp wider at

120.3bps as efforts to try and form a government look to be failing as Five Star

movement once again refused to team up with Forza Italia.

- There is a lack of Eurozone data for the markets to look forward too, although

the IMF/World bank meeting in Washington kicks off today so comments from

central bankers will be eyed.

- Euribor strip has seen light 2-way flow but with ECB expected to remain on

hold and not adjust its forward guidance next week, prices remained anchored.