EGBs are having a quiet session so......>

EGB SUMMARY: EGBs are having a quiet session so far following yesterday's large

moves and ahead of US nonfarm payrolls data later (1230GMT). German Bund yield

is currently unchanged at 0.532% with yield curve slightly steeper as short-end

come under a little selling pressure.

- While yesterday`s EMU/UK rates rally seemed fuelled at least in part by a big

intraday drop in equities, yields did not sell off after stocks bounced back.

This suggests that the market may have come to grips with weaker European growth

and inflation data.

- This morning's EMU Services PMI data, which was a little soft, and ECB Vice

President Constancio's comments on future of ECB monetary policy had little

impact on market direction.

- A bit of Euribor steepener trading this morning on Mar19-Mar20, potentially

marking profit-taking after yesterday's curve flattening. Further out, Dec21

Euribor off half a tick while whites and reds flat.

- EMU periphery a little tighter to Core/Semi-core EGBs, despite Italy's Five

Star movement again saying that fresh elections are more likely.