Core EGBs have retreated from...........>

EGB SUMMARY: Core EGBs have retreated from overnight highs Thursday, while

Italian BTPs are underperforming.

- The Mar 19 Bund future is up 3 ticks at 164.67, having traded in a range of

164.61-165.10. The 2-Yr yield is unchanged at -0.614%, 5-Yr is down 0.4bps at

-0.375%, 10-Yr is up 0.2bps at 0.167%, and 30-Yr is up 0.2bps at 0.802%.

- Fairly muted reaction to Apple earnings disappointment which triggered a big

move in the Yen and helped trigger European equity weakness today.

- However the risk-off tone is not helping BTPs, with the Mar 19 future down 41

ticks at 127.89, with 10-Yr spread vs Bunds up 4.1bps at 256.8bps. Wednesday's

news that Banca Carige was put into administration also weighing.

- That compares with Spain, Portugal and Greek 10-Yrs which are only marginally

wider versus Bunds.

- French OATs a little wider vs Bunds, 10-Yr 0.2bps wider at 48.7bps.

- Fairly thin day data-wise. 2019 EGB issuance gets underway later with Spain

selling E4.0-5.0bln in Bono/Obli and E0.25-0.75bln in linkers.