Core and periphery EGBs alike are.......>

EGB SUMMARY: Core and periphery EGBs alike are trading higher early on Thursday,

with EMU inflation data missing consensus to the downside.

- The Dec 18 Bund future is up 31 ticks at 161.21. The 2-Yr yield is down 0.8bps

at -0.593%, 5-Yr is down 1.5bps at -0.252%, 10-Yr is down 1.8bps at 0.331%, and

30-Yr is down 1.7bps at 1.001%.

- Spain Nov flash CPI and HICP at 1.7% Y/Y were below 2.0% consensus; German

regional Nov inflation (Saxony) below survey at 2.1% Y/Y (2.4% consensus).

- German preliminary inflation data out later today.

- Italian BTPs fairly steady by their standards: 2-Yr yield is down 2.2bps at

0.877%, 10-Yr is down 1bps at 3.246%. Tesoro comes to market for E4-5.5bln of

BTP and CCTeu this morning.

- Periphery EGB spreads (Portugal, Spain, Italy, Greece) are flat to Bunds.

- French Q3 GDP second reading came in at 1.4% Y/Y vs 1.5% expected; 0.4% Q/Q

was in line. OAT Dec18 Futures are up 23 ticks at 152.65.

- Euribor futures strip bull flattening, Blues up 2.0-2.5 ticks.

- ECB speakers today include Lautenschlaeger, Draghi, and Angeloni.