Core EGBs have sharply reversed from....>

EGB SUMMARY: Core EGBs have sharply reversed from best intraday levels but

remain higher on the day Friday, with Italian BTPs recovering.

- Jun Bund futures spiked to fresh contract highs at 168.63 by 1100UK time, on

both global trade fears and weak German data, though gains have since faded.

- 2-Yr German yield is down 3.1bps at -0.671%, 5-Yr is down 2.2bps at -0.582%,

10-Yr is down 2.2bps at -0.197%, and 30-Yr is down 3.4bps at 0.437%.

- Italian spreads have round-tripped, after rising to fresh 2019 highs. Local

press reported Rome would tell EU it planned to cut welfare costs.

- Italy / German 10-Yr spread last 0.3bps tighter at 282.8bps.

- Greece is the star of the day, 10-Yr yield 11.9bps tighter to Bunds at 311bps

as it went below 3% for the first time. Only 29bps outside Italy.

- Euribor strip up 1.0-1.5 ticks. Latest EGB futures prices:

* Jun Bund futures (RX) up 39 ticks at 168.39 (L: 168.3 / H: 168.63)

* Jun BTP futures (IK) up 13 ticks at 130.29 (L: 128.99 / H: 130.39)

* Jun OAT futures (OA) up 32 ticks at 164.3 (L: 164.12 / H: 164.42)