Core EGBs have come off afternoon.......>

EGB SUMMARY: Core EGBs have come off afternoon highs while Italian spreads have

given up earlier tightening Thursday (albeit amid quiet Europe holiday trade).

- 10-Yr BTPs had tightened over 5bps to Bunds by midday, but this reversed amid

headlines that League`s Salvini was prepared to end the government coalition if

5-Star did not back his tax plan proposal. Last 0.5bps tighter  at 281.5bps.

- Meanwhile, 10-Yr Greek spreads to Italy have compressed to fresh decade lows,

tightening 8.4bps to 41bps.

- The Jun 19 Bund future is down 10 ticks at 167.92, having traded as high as

168.14 earlier before equities started coming back.

- Euribor strip is flat out to Blues and Golds (off 0.5-1.0 ticks).

- Portugal successfully issued 3-Yr Panda bond, the first such EZ soverign

issuer (see Bullet at 14:56BST) and concluding EGB issuance for the week.

- Latest futures prices:

* Jun Bund futures (RX) down 9 ticks at 167.93 (L: 167.72 / H: 168.14)

* Jun BTP futures (IK) down 13 ticks at 130.11 (L: 129.97 / H: 130.67)

* Jun OAT futures (OA) down 16 ticks at 163.93 (L: 163.8 / H: 164.13)