/EGBS/GILTS: Data largely took a.......>

BOND SUMMARY: /EGBS/GILTS: Data largely took a backseat to geopolitics in

driving European FI Friday -- despite upside surprises to both German and French

inflation, rising U.S.-Iran tensions led to a flight to safety.

- France (1.4% Y/Y) and German (1.5%) CPI each 0.1pp above surveys.

- Had little impact though, with Bunds and OATs rallying throughout the morning.

- FI complex eased off a bit in the afternoon - knee-jerk jump at 1500GMT on a

weak U.S. ISM reading, but this proved short-lived.

- German curve has bull flattened: 2-Yr yield down 1.8bps at -0.621%, 5-Yrs down

3.9bps at -0.548%, 10-Yrs down 5.4bps at -0.277%, 30-Yr down 5.9bps at 0.248%.

- Italian spreads collapsed early but have since widened - 10-Yr as tight at

157.5bps to Bunds, last at 164.1bps (up 0.3bps).

- The Mar 20 Gilt future is up 45 ticks at 132.15 (131.97-132.52 range).

- Varied but fairly limited data next week, including some PMI figures,

inflation, employment, and German factory orders. No ECB/BoE speakers scheduled.

- Germany, France, Spain and Austria will kick off issuance for 2020 next week.

We estimate supply of E19.3bln.