Core and semi-core EGBs have............>

EGB SUMMARY: Core and semi-core EGBs have strengthened since Tuesday evening`s

announcements of augmented US import tariffs on Chinese goods.

- With global trade war fears mounting again, 10-year Bund Sep8 futures are up

34 ticks at 162.72, erasing all of the week`s earlier losses. 

- Periphery EGBs are mixed-to-weaker. 10-year Italian BTP yields up 0.9bps (with

the curve bear flattening amid a 1.3bps rise in 2s) and Portuguese 10-years up

0.2bps at 1.757%. Spain the exception, 10-yr yields down 0.5bps at 1.273%.

- On the supply front, Portugal had a solid auction of 10- and 15-year PGBs this

morning while Germany had good real bid/cover (1.3x) on the new 10-year Bund.

Italy and Ireland are up Thursday with medium/long-term auctions.

- Euribor futures are little changed. White and Red contracts are unmoved,

though there has been an uptick in longer-dated contracts (Jun-22 up 2 ticks).

- Little has emerged from the ongoing ECB statistics conference in Frankfurt,

with Draghi reportedly not discussing monetary policy; Praet, Mersch and Nouy up

later for what it`s worth. Data flow picks up Thursday with DE/FR/EZ final

inflation and EZ industrial production.