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

BOND SUMMARY: EGB/GILT SUMMARY: Core EGBs have pushed steadily higher all day

Friday, while BTP spreads remain elevated, as comments from ECB's Draghi and an

Italian ratings review after hours are awaited.

- Mar 19 Gilt future is up 48 ticks at 124.19, boosted by dashed expectations of

a Brexit withdrawal deal being reached in near-term - albeit off intraday high

of 124.35. Reports today that next week`s UK parliament vote could be postponed.

- Certainly, no breakthrough expected at Egypt summit this weekend.

- Against this backdrop, Bunds have consistently risen all day from the European

open. Mar 19 Bund future is up 49 ticks at 166.56 (high of 166.59).

- 10-Yr Bund leading the rally on the German curve, yield down 3.1bps at 0.096%.

- Fitch's ratings review of Italy this evening (currently BBB neg) possibly

playing a part in widening BTP spreads. 2-Yr yield is up 7bps at 0.542%, 10-Yr

up 3.3bps at 2.866% (out 6.4bps vs Bunds at 277bps, intraday wide of 279bps).

- Spain/Portugal 10-Yr spreads 0.5-0.6bps wider.

- ECB`s Villeroy speaking now, toeing the line on normalisation and pointing to

decision on TLTROs `in due time`- but all eyes on Draghi who is up at 1615GMT.