Core EGBs have edged lower over the.....>

EGB SUMMARY: Core EGBs have edged lower over the course of Thursday, with

weakening Treasuries amid strong US data providing the impetus.

- The Mar 19 Bund future is down 35 ticks at 165.33, but was trading 165.70

prior to strong US GDP data at 1330GMT, with next leg lower coming over an hour

later after very strong MNI Chicago PMI. Low of 165.15 hit at 1534GMT.

- German 2-Yr yield is up 1.1bps at -0.517%, 5-Yr is up 2.4bps at -0.277%, 10-Yr

is up 3.3bps at 0.181%, and 30-Yr is up 3.7bps at 0.805%.

- Bunds have underperformed, with periphery EGB spreads coming in sharply.

- Spread of 10-Yr Italian BTPs vs Bunds down 5.9bps at 257.7bps, Spain down

2.5bps at 98.6bps, Portugal down 1.1bps at 129.2bps, and Greece top of the

leaderboard, down 7.1bps at 348.4bps.

- German bond weakness has also allowed French 10-Yr OAT spreads to hit lowest

since early December, down 1.2bps at 39.1bps.~

- Main data focus Friday will be on Eurozone Feb preliminary inflation.