Core EGBs are stronger and BTPs are.....>

EGB OPTIONS: Core EGBs are stronger and BTPs are weaker to begin Friday.

- The Dec 18 Bund future is up 33 ticks at 159.7, with the curve bull

flattening. The 2-Yr yield is down 1.3bps at -0.592%, 5-Yr is down 2.3bps at

-0.162%, 10-Yr is down 2.6bps at 0.431%, and 30-Yr is down 2.3bps at 1.064%.

- Meanwhile, Dec 18 BTP future is down 12 ticks at 121.93, having traded in a

range of 121.81-122.1 today. 

- Lower house budget committee Borghi in interview with La Stampa said the EU`s

figures on Italy`s budget are "without foundation", and is willing to see if

Brussels "has the courage" to begin EDP procedures. Spread of 10-Yr BTPs vs

Bunds is up 4.3bps at 298.2bps.

- Fin Min Tria meeting Eurogroup chief Centeno in Rome at 1300GMT.

- Spanish and Portuguese 10-Yr yields are 1-2bps wider of Bunds, Greece out

2.9bps.

- French Sep IP figure missed badly; -1.1% Y/Y vs +1.1% exp. OATs a little

stronger, belly of the curve outperforming (5-yr yld down 1.8bps at 0.137%;

10-Yr down 1.5bps at 0.807%).