EGBs are set to conclude a relatively...>

EGB SUMMARY: EGBs are set to conclude a relatively quiet Friday slightly higher,

as trade wars and US nonfarm payrolls have been much ado about nothing.

- German Bund Sep8 futures are up 13 ticks at 162.82, 36 ticks up from the low.

The curve is modestly steeper, 2s10s up 0.2bps at 94.5bps.

- The Euribor futures strip is a touch steeper but little changed overall on

thin trading. Blue contracts up half a tick and Whites and Reds flat.

- Italian BTPs have pared gains following a Reuters report that the government

is set to increase the 2019 deficit/GDP target to 1.4% from 0.8% currently.

While the 10Yr yield has dropped 2.3bps on the day to 2.706%, the spread vs

Bunds is now just 1.3bps tighter, compared with 6.3bps of narrowing earlier.

- Spanish spreads are also slightly tighter, but Portuguese 10Yrs are 1.0bps

further outside Bunds to a six-session high of 151.2bps. Supply announcement

this afternoon possibly weighing, with up to E1bln total of Oct-28 and Apr-34

PGBs auctioned next week.

- Going into next week: Monday highlighted by ECB`s Draghi speaking at the

European Parliament. On Tuesday, France/Italy indu prod data and German ZEW.