Core and periphery EGBs alike are set...>

EGB SUMMARY: Core and periphery EGBs alike are set to conclude Friday fairly

steady on the day, with Bunds slightly paring Thursday's gains.

- The Dec 18 Bund future is down 18 ticks at 160.63, having traded in a range of

160.54-160.76 today. A bit of steepening: 2-Yr yield up 0.2bps at -0.588%, 5-Yr

up 0.8bps at -0.227%, 10-Yr up 0.9bps at 0.369%, and 30-Yr up 0.1bps at 1.033%.

- Periphery EGBs had a bit of respite; Dec 18 BTP future up 4 ticks at 121.38,

having traded in a range of 121.25-122.15.

- EGB spreads a bit tighter to Bunds;10-Y BTPs in 1.3bps at 312bps, Spain in

0.5bps at 126.6bps,Portugal in 0.5bps at 160.4bps,Greece in 1.8bps at 420.6bps.

- Euribor a half tick lower across the strip.

- Bundesbank/ECB's Weidmann said this afternoon the ECB could resort to "some

tinkering with the operational framework," but that a lean balance sheet would

help the Eurosystem to "retain or regain sufficient policy space for cases of

future need."

- Thin on Eurozone data until next Tuesday. EC set to weigh in on Italy's budget

reply on Weds 21st.