EGBs are taking a bit of a breather.....>

EGB SUMMARY: EGBs are taking a bit of a breather Thursday after a sharp drop in

core Eurozone bonds in the previous session.

- Mar 19 Bund futures helped in the overnight session by softer than expected

official Chinese PMI data; last up 17 ticks at 165.85, high of 165.97.

- German curve fairly flat, 2s, 10s, 30s yields each down 0.2bps.

- French flash Feb inflation came in a little below expectations this morning;

Q4 GDP in line however. Germany's inflation figures up at 1300GMT.

- French OATs a little stronger, most of the yield curve 0.1bps richer.

- Mar 19 BTP future is up 23 ticks at 128.13, with short end of the curve

recovering some of Wednesday`s losses triggered in part by condemnation over the

budget by the EC - 2-Yr yield down 3.8bps at 0.383%.

- Periphery EGB spreads vs Bunds are mixed, with 10-Yr Italy 0.8bps narrower,

Spain wider by 0.6bps, Portugal flat, Greece down 1bps.

- No scheduled ECB speakers until March 7 monetary policy decision.