Core EGBs have been trading weaker......>

EGB SUMMARY: Core EGBs have been trading weaker all morning Friday, with no

clear catalyst, while BTPs (and broader periphery) have been pushing higher.

- The Jun 19 Bund future is down 11 ticks at 164.02, having traded in a range of

163.94-164.38 today.

- The 2-Yr yield is down 0.1bps at -0.538%, 5-Yr is up 0.6bps at -0.334%, 10-Yr

is up 1bps at 0.096%, and 30-Yr is up 0.8bps at 0.752%.

- Eurozone Feb inflation was in line with consensus. Some attention being paid

to unofficial 'supercore' picking up (independent estimates we've seen show move

above 1.30% Y/Y, which would be highest since late 2013).

- BBG reported Deutsche Bank is seeking Merkel's approval for Commerzbank

merger. Not much move in the share price, though broader equities are stronger

(again, no catalyst), with EuroStoxx50 up 1.2%.

- The Jun 19 BTP future is up 5 ticks at 129.28, with the cash curve flatter

(2-Yr yield up 0.3bps 10-Yr is down 0.8bps).

- ECB's Rehn said earlier that the ECB should embark on a monetary policy

strategy review, notable as he is a potential Draghi successor.