Core EGBs have fallen sharply in a......>

EGB SUMMARY: Core EGBs have fallen sharply in a risk-on end to the week, with

Greek yields set to end Friday at new 10+yr lows.

- Jun Bund futures (RX) down 83 ticks  at 164.75 (L: 164.7), with the cash curve

getting hit hard at the long end: 2-Yr yield up 1.1bps at -0.566%, 5-Yr up

4.8bps at -0.377%, 10-Yr up 5.8bps at 0.049%, 30-Yr up 6.1bps at 0.695%.

- Spread of 10-Yr Greek bonds vs Bunds is down 11.3bps at 324.6bps, lowest since

Feb 2018. The 10-Yr GGB yield has fallen 50bps since Mar 29, now 14-yr low.

- Spain / Portugal spreads about 2bps tighter to Germany.

- Very little reaction to ECB speakers in Washington this afternoon, including

Praet and Draghi, who have mostly gone over old ground.

- Intriguing headline from Reuters that Praet said at Goldman Breakfast that

"latest OIS curve fits well with how we think financial conditions should be"

which at face value, implies comfort with outlook for flat / lower rates.

- Euribor futures strip bear steepening, with Blues/Golds down 6-7 ticks.

- Ratings after hours include Fitch on Cyprus and Latvia, S&P on Germany, and

DBRS on E.U.