EGBs continue to seek direction as......>

EGB SUMMARY: EGBs continue to seek direction as markets digest Thursday's ECB

decision, but Dec PMIs this morning could help point the way.

- The Mar 19 Bund future is up 12 ticks at 162.99, with some bull flattening in

the curve: 2-Yr yield is down 0.6bps at -0.588%, 5-Yr is down 1.2bps at -0.283%,

10-Yr is down 1.8bps at 0.267%, and 30-Yr is down 1.5bps at 0.88%.

- Reuters story out Thurs evening cited sources that ECB policymakers wanted to

adopt an even more cautious tone on the eurozone economic outlook in the

decision, saying the risks were 'tilted to the downside'.

- The Mar 19 BTP future is up 13 ticks at 125.48, as it appears we are inching

closer to a resolution between Italy and Brussels.

- Local press (Messaggero, Stampa, Repubblica) reported that the sides are

E4.0bln or E4.5bln (0.25%) apart on the budget, that Rome is considering a VAT

hike in 2020, and that they aim to finish talks by Sunday.

- France kicked off flash Dec PMIs with a 49.7 in manufacturing, 49.6 svcs, and

49.3 composite; Gilets Jaunes protests unsurprisingly mentioned as factor.

- Germany next up at 0830, Eurozone at 0900.