EGB/GILT SUMMARY: Core EGBs are........>

BOND SUMMARY: EGB/GILT SUMMARY: Core EGBs are trading stronger with periphery

spreads a little wider Friday, with Gilts moving sideways.

- Dec flash PMIs (FR, DE, EZ)drove Bunds higher as they came in weak this

morning, with anecdotal evidence pointing to French protests, Brexit, autos and

tighter financial conditions weighing on activity and confidence.

- Mar 19 Bund futures up 25 ticks at 163.12, earlier as high as 163.30; weighed

down mid-morning (1000GMT) briefly on news of China dropping retaliatory tariffs

on U.S. car imports.

- While Italy and the EU are reportedly close to a budget deal (as early as

Sunday?), Mar 19 BTP futures down 18 ticks at 125.17 (well off 125.61 high).

- The Mar 19 Gilt future is down 1 tick at 123.32, having traded in a range of

123.23-123.53 today. Main headlines relate to UK PM May receiving no quarter

from the EU on legal concessions on the Irish backstop. 

- Belly of the Gilt curve outperforming: 2-Yr yield down 2.1bps at 0.752%, 5-Yr

down 2.3bps at 0.892%, 10-Yr down 1.9bps at 1.27%.

- ECB's Angeloni speaks in Rome at 1330GMT.