EGBs are benefiting early Thursday......>

EGB SUMMARY: EGBs are benefiting early Thursday from a dovish Fed announcement

Wednesday evening and continued weakness in Eurozone inflation prints.

- Below-consensus Jan flash HICP readings this morning, highlighted by France

(1.4% Y/Y vs 1.6% median exp.) and Spain (1.0% vs 1.1% exp).

- Mar 19 Bund futures up 34 ticks at 165.52, high of 165.63 earlier. Bull

flattening on the curve: 2-Yr yield is down 0.3bps at -0.568%, 5-Yr down 1.5bps

at -0.306%, 10-Yr down 2bps at 0.168%, and 30-Yr down 2.2bps at 0.76%.

- German Dec retail sales below consensus (-4.3% M/M below -0.8% exp) but this

is a volatile series. Still, few signs of German econ strength.

- French 10-Yr OAT spreads continue to hover just above 40bps (down 0.5bps).

- BTPs up as well, Mar19 future up 31 ticks at 129.72.

- EGB periphery yields a little tighter, 10-Yrs for Spain/Italy/Portugal/Greece

flat-to-down 1bps.

- Portugal buys back 4.80% Jun-20 in exchange for 2.125% Oct-28 at 1000GMT.

- Eurozone Q4 GDP Data out at 1000GMT; Jan inflation out Friday.

- ECB speakers today include ECB's Coeure, Mersch, and Weidmann.