Core EGBs began a mini-rally late in....>

EGB SUMMARY: Core EGBs began a mini-rally late in the session as equities began

approaching weekly lows, with market participants seemingly taking some risk off

the table going into the weekend.

- Bund yields are near the week`s lows, with the 10-yr yield just below the key

0.30% level, down 2.1bps at 0.299%. The curve is a little flatter, with 2-yr

yields down 1.7bp and 5-yrs down 2.2bps.

- Italian 10-year BTP yields are on track for their highest weekly close since

April 2014, having risen by 4.3bps to 3.160% Friday. Spreads over Bunds up by

6.1bps at 285.9bps.

- Other periphery EGBs are also seeing spread widening vs Germany, though not

quite as dramatically, with Spain 10s out 2.7bps at 115.2bps, Portugal out

2.3bps at 155.8bps, and Greece out 3.1bps at 404.3bps.

- A bit of flattening in the Euribor curve, but little movement overall. Green

and Blue contracts up 0.5-1.0 ticks.

- S&P rating decision on Turkey expected late Friday. Fairly quiet data week up

ahead, with highlights being FR, DE, and EMU flash August PMIs.