Core EGBs sold off Friday afternoon.....>

EGB SUMMARY: Core EGBs sold off Friday afternoon alongside strong U.S. economic

data, while Italian BTPs remain much weaker despite paring earlier losses.

- Italian debt has been by far the biggest underperformer in the EGB space,

alongside poor Jan PMI data confirming that the H2 2018 recession has been

followed up by early 2019 weakness.

- Mar 19 BTP future down 143 ticks at 128.14, albeit off low of 127.57. Weaker

across the curve, 2-Yr yield is up 13.5bps at 0.406%, 5-Yr is up 13.4bps at

1.652%, 10-Yr is up 13.5bps at 2.724%, and 30-Yr is up 9.9bps at 3.569%.

- 10-Yr Italian BTPs vs Bunds is up 12.1bps at 256bps.

- Bunds slightly weaker, Mar19 future down 16 ticks at 165.51. Curve mixed: 2-Yr

yield down 1.1bps at -0.575%, 10-Yr up 1.5bps at 0.164%.

- Rest of the EGB periphery hanging in there, Spain/Portugal spreads largely

unmoved. Greece weaker, 10Y Spread/Bunds 3.8bps wider.

- A bit more data awaits Monday with Spanish Jan unemployment, Italian Jan

inflation, and Eurozone Dec PPI.

- Monday also sees ECB's Mersch speaking in Budapest.