EGBs are trading with a risk-off tone...>

EGB SUMMARY: EGBs are trading with a risk-off tone so far Friday, with core

instruments stronger and peripheries weaker.

- The Dec 18 Bund future is up 33 ticks at 159.7, around the middle of today's

trading range of 159.43-159.82.

- The 10-Yr is outperforming, w 2-Yr yield down 1.7bps at -0.596%, 5-Yr down

2.4bps at -0.163%, 10-Yr down 2.6bps at 0.431%, and 30-Yr down 2.4bps at 1.063%.

- Main EGB-relevant headlines have been out of Italy, with Econ Min Tria

expressing concern about a sustained 300bps BTP/Bund spread, but all noises out

of Rome today suggest the government remains steadfast on its budget plans.

- 10-Yr BTPs underperforming the Italian curve, with yield up 4.6bps at 3.442%,

spread 7.2bps wider at 301.1bps (as noted by Tria).

- Tria set to meet with Eurogroup chief Centeno at 1300GMT.

- Greece the underperformer, 10-Yr spread vs Bunds up 8.8bps at 396.7bps.

- Eurozone key data releases are done for the week; attention turns to US

data/speakers this afternoon.