Core/Semi-core European government bonds.......>

EGBS: Core/Semi-core European government bonds have slipped lower at start of

Friday's trade, dismissing the weak German industrial production and large fall

in its trade balance as markets trade with a risk-on tone. German 10-yr Bund

yield is 0.5bp higher at 0.36% and is leading the rest of the curve higher.

- German industrial production surprisingly contracted by 1.1% m/m in July,

while exports dropped by 0.9% and imports rose by 2.8%, reducing its trade

balance to E16.3bln in July from E21.8bln. However this was offset by strong

outperformance of the French industrial sector which rose by 0.7% m/m.

- Spain and especially Italy are opening on the positive side as traders

continue to see value in BTPs. 10-yr BTP yield is 5.2bp lower at 3.006%, while

10-yr Bonos yield is 0.5bp lower at 1.444%.

- Eurozone final Q2 GDP data is the main data event this morning, crossing the

wires at 0900GMT. Attention will then turn to key US non-farm payrolls in the

afternoon.

- Euribor futures are mixed with Jun20 to Jun21 contracts 0.5 tick higher while

Dec21 and Jun22 are 0.5 tick lower