EGBs finished the week on the back......>

EGB SUMMARY: EGBs finished the week on the back foot, with a sell-off led by a

rise in US yields pushing Bunds and periphery bonds lower.

- The 10-year Bund yield rose to a three-session high just shy of the week's

high, climbing steadily over the day by 4.3bps to 0.3730%. The curve bear

steepened, with 2s10s rising by 2.9bps to 98.6bps.

- Likewise the Euribor futures curve bear steepened, with Red contracts down

0.5-1.0 ticks and Greens and Blues down 1.5-3.0 ticks.

- Italian spreads over Bunds came back from political risk-induced highs early

in the day but remained elevated, and have reversed the gains made in mid-week.

2-Yr BTP yields up 8.9bps to 0.634% (spread v Bund up 7.6bps to 125.1bps),

10-Yrs up 8.3bps to 2.588% (spread up 4.3bps at 221.9bps). 

- Spanish and Portuguese bonds were weaker but spreads narrowed vs Bunds as the

latter sold off (10-Yr Bonos by 1.3bps at 93.8bps, and PGBs by 2.4bps at

139.9bps). 

- A few sovereign ratings reviews after hours, including S&P on Greece and Fitch

on Austria & France.