EGBs are having a constructive end to...>

EGB SUMMARY: EGBs are having a constructive end to the week, with core and

periphery instruments alike pushing higher late Friday.

- Bunds initially jumped after soft U.S. hourly earnings figures at 1330BST,

then fell sharply, only to recover strongly as the afternoon unfolded.

- Jun 19 Bund future is down 6 ticks at 165.46, with the cash curve trading

mixed (+/- 0.3bps out to the 30-Yr).

- Jun BTP futures are up 22 ticks at 129.57, with 10-Yr cash spreads/bunds

3.7bps tighter at 248.7bps.

- The rest of the periphery performing strongly as well: Spain and Portugal

10-Yr/Bunds trading 1.1bps tighter, with Greece in 8.2bps.

- OAT futures are up more than 50 ticks from the low, last up 14 ticks at 162.14

(L: 161.62 / H: 162.19).

- The Euribor strip is basically flat, with Whites through Blues stable, though

Golds have sold off 2-3 ticks.

- Saturday morning sees ECB`s Mersch speak in Italy; Villeroy speaks in Paris on

Monday.