Core EGBs have round-tripped over the...>

EGB SUMMARY: Core EGBs have round-tripped over the course of Friday, recovering

early losses on the back of mixed U.S. economic data, then correcting on further

signs of a U.S.-China trade detente. Periphery EGB spreads a little tighter.

- The Mar 19 Bund future is down 16 ticks at 164.14, having traded in a range of

163.84-164.34. The 2-Yr yield is up 0.5bps at -0.585%, 5-Yr is up 1.2bps at

-0.34%, 10-Yr is up 1.3bps at 0.256%, and 30-Yr is up 1.5bps at 0.865%.

- Highs were hit after 1500GMT when U.S. Michigan consumer sentiment came in way

below expectations, but fell after BBG headline at 1519GMT that China had

offered a path to 'eliminate' trade imbalances with the U.S.

- Mar 19 BTP future is up 33 ticks at 127.87, 2-Yr yield is down 0.9bps at

0.327%, 10-Yr is down 2.2bps at 2.743%. 10Y/Bund spread down 3.6bps at 248.7bps.

- Spain, Portugal, Greece 10Y spreads vs Bunds down 3-4bps apiece.

- French 10-Yr OAT spreads hanging on just below 40bps, down 0.1bps on the day.

- Next week sees a Eurogroup meeting on Monday and the ECB meeting on Thursday,

as well as the Davos meetings. Flash Jan PMIs out as well.