EGBs-GILTS CASH CLOSE: Curves Flat With Focus On Weekend Brexit Talks

Friday proves a fairly subdued session for European fixed income, reflecting a US market half-day and relatively limited macro/headline cues.

• Periphery EGB spreads tightened slightly, while the UK and German cash curves finished relatively flat after weakening for most of the session.
• The biggest headlines were Brexit-related and the weekend will be all about the negotiations. EU's Barnier headed to London Friday evening for further talks.
• On Monday we get flash inflation data in the Eurozone and an appearance by ECB's Lagarde. No EGB/Gilt supply though.

Closing Levels / 10-Yr Periphery EGB Spreads:

• Germany: The 2-Yr yield is up 0.1bps at -0.755%, 5-Yr is down 0.5bps at -0.77%, 10-Yr is unchanged at -0.588%, and 30-Yr is down 0.4bps at -0.182%.
  
• UK: The 2-Yr yield is down 0.3bps at -0.043%, 5-Yr is down 0.3bps at -0.011%, 10-Yr is up 0.3bps at 0.284%, and 30-Yr is down 0.4bps at 0.831%.
• Italian BTP spread down 0.7bps at 118.2bps
• Spanish bond spread up 0.7bps at 64.6bps
• Portuguese PGB spread up 0.4bps at 60.1bps
• Greek bond spread down 1.8bps at 124bps