EGBs are trading mixed, with flash......>

EGB SUMMARY: EGBs are trading mixed, with flash PMI data coming out this morning

and Italian budget news eyed.

- The Dec 18 Bund future is up 6 ticks at 158.8, with the curve steepening to

begin Friday, with the 2-Yr yield down 0.3bps at -0.532%, 5-Yr up 0.4bps at

-0.101%, 10-Yr up 0.8bps at 0.479%, and 30-Yr up 0.9bps at 1.139%.

- Italian BTP yields are a little lower, following on from Deputy PM Di Maio's

statement after hours that his 5-Star party is not seeking to dismiss Fin Min

Tria, and with Lega set to present budget proposals Friday. The 2-Yr yield is

down 0.7bps at 0.809%, 10-Yr is down 0.6bps at 2.876%. - EGB periphery spreads

vs Germany are a little narrower, with 10-Yr BTPs vs Bunds in 1.1bps at 240bps,

Spanish in 0.4bps at 103.6bps, Portuguese in 0.3bps at 140.9bps, and Greek in

0.3bps at 360bps.

- A slew of EMU flash PMI readings for September are ongoing (France manuf came

in a little below expectations at 52.5 vs 53.3 median, with Composite hitting

21-month low of 53.6.