Core EGBs are well off day's best.......>

EGB SUMMARY: Core EGBs are well off day's best levels but remain higher Friday,

with periphery spreads a little tighter as the week comes to a close.

- Geopolitical jitters helped contribute to a risk-off environment early, with

Bunds rallying - 10-Yr hit a fresh all-time low yield  of -0.270%.

- The rally faded, with strong U.S. retail sales data taking the impetus out of

global safe haven assets.

- German 2-Yr yield is down 1.7bps at -0.692%, 5-Yr is down 1.1bps at -0.602%,

10-Yr is down 1.5bps at -0.256%, and 30-Yr is down 3.5bps at 0.32%.

- Italian, Spanish, Portuguese spreads 2.5-3bps tighter to 10-Yr Bunds; Greece

notably wider by 1.2bps.

- Euribor futures have traded within a very narrow range, last up 0.5-1.0 ticks

across the strip. Current EGB futures levels:

* Sep Bund futures (RX) up 21 ticks at 171.75 (L: 171.59 / H: 171.99)

* Sep BTP futures (IK) up 50 ticks at 131.81 (L: 131.45 / H: 132.13)

* Sep OAT futures (OA) up 25 ticks at 163.55 (L: 163.4 / H: 163.73)