Core EGBs have come off best intraday...>

EGB SUMMARY: Core EGBs have come off best intraday levels Friday but it has been

a strong day for them to say the least, with Italian spreads widening.

- Risk-off globally boosting Bunds, but core EGB yields also depressed by weak

data out earlier (incl German retail sales/regional inflation).

- 10-Yr German yield hit record-low -0.213%, last -0.207%. Curve flattening,

obviously: 2Y10Y Spread at -0.1bps at 46.2bps.

- Eurostoxx 

- Greece handily outperforming, 10-Yr yield moving below 3% for first time, with

spread to Bunds tightening 2.6bps at 320.3bps.

- Conversely, Italy / German 10-Yr spread 9.4bps wider at 292.5bps. ECB`s Visco

commented earlier that Italy`s debt was a `severe constraint` on the economy.

- BBG headline that Italy to publish reply to E.U. later on Treasury website.

- Latest futures levels:

* Jun Bund futures (RX) up 53 ticks at 168.53 (L: 168.3 / H: 168.63)

* Jun BTP futures (IK) down 70 ticks at 129.46 (L: 128.99 / H: 130.02)

* Jun OAT futures (OA) up 34 ticks at 164.32 (L: 164.12 / H: 164.42)