Core EGBs have clawed back early........>

EGB SUMMARY: Core EGBs have clawed back early losses but remain down on the day,

while periphery spreads are off their lows, as renewed risk appetite has faded.

- The Bund curve steepened out to 10 years, with 2-yr yields up 0.5bps at

-0.642% and 10-yrs  up 0.7bps at 0.311%. The latter is up 1bps from day`s low.

- Greek bonds underperformed with 10-yr spread vs Bunds up 5.0bps at 402.4bps.

- Italian yields have edged down from multi-month highs but remain elevated,

with 2-yrs ourperforming the curve down 7.7bps at 1.287% and 10s 4.9bps higher

at 3.120% in a bull steepening move.

- Spanish and Portuguese spreads were largely unchanged, with their respective

10-years widening 1.7bps and 1.4bps vs Germany.

- Euribor futures are slightly lower across the longer dated end of the strip,

with Greens and Blues down 0.5-1.0 ticks.

- A bit of data up Friday to round out a fairly quiet week on that front, with

EMU Jun current account and final July HICP figures.